d 


ex- 


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New  Orleans 
Board  of  Trade, 
Limited. 


CORRESPONDENCE, 

t I 

REPORTS  AND  ADDRESSES, 

ON  THE  SUBJECT  OF  THE 

Commerdal  and 
Industrial  Value 

OF  AN 

Inter -Oceanic  Canal. 


New  Orleans, 
May,  1900. 


/ 


f ) 


OFFICERS  AND  DIRECTORS 


i * 

7 5 


OF  THE 

New  Orleans  Board  of  Trade, 

LIMITED. 


OFFICERS  1900. 


UDOLPHO  WOLFE,  President. 

J.  HY.  LAFAYE,  1st  Vice  Pres.  JOHN  FENNELLY,  2d  Vice  Pres. 
HENRY  KAHN,  3d  Vice  Pres.  HY.  H.  SMITH,  Secy,  and  Treas. 


DIRECTORS. 


Term  Expiring  January,  1901. 


TTDOLPHO  WOLFE. 
HENRY  KAHN. 
FRED  A.  DICKS. 
JACOB  ADLER. 
ROBERT  B.  JONES. 
J.  HENRY  LAFAYE. 
G.  R.  WESTFELDT, 
BURR  D.  WOOD. 


GUS  LEHMANN. 

JOHN  T.  GIBBONS. 

E.  F.  KOHNKE. 

JOLIN  FENNELLY. 
CHARLES  M.  MURRAY. 
G.  A.  LANAUX. 

CHAS.  H.  SCHENCK. 
ALBERT  P.  NOLL. 


Term  Expiring  1902. 


S.  LOCKE  BREAUX. 
PRUDENT  MALLARD. 
NEVINS  KIRKPATRICK. 
LUCAS  E.  MOORE. 

B.  F.  ESHLEMAN. 
DANIEL  H.  HOFFMAN. 


HENRY  B.  SCHREIBER. 
JOSEPH  KOHN. 

JAS.  J.  CLARK. 
PATRICK  McCLOSKEY. 
SAMUEL  A.  TRUFANT. 
WALTER  L.  SAXON. 


P33550 


New  Orleans  Board  of  Trade, 


LIMITED. 


CORRESPONDENCE,  REPORTS  AND  ADDRESSES 


ON  THE  SUBJECT  OF  THE 

Commercial  and  Industrial  Value  of  an  Inter-Oceanic  Canal. 


DEPARTMENT  OE  STATE,  ISTHMIAN  CANAL  COMMIS- 
SION, ROOM  75,  CORCORAN  BUILDING. 

Washington,  D.  C.,  May  3,  1900. 
Secretary  Board  of  Trade,  New  Orleans,  La.: 

Dear  Sir. — The  Isthmian  Canal  Commission  is  making  a thorough 
investigation  into  the  industrial  and  commercial  value  which  an 
Intei’-Oceanic  Canal  would  possess.  The  committee  entrusted  with 
this  investigation  has  now  been  ait  work  for  some  time,  and,  as  you 
may  know,  is  endeavoring  to  secure  as  complete  information  as  it  is 
possible  to  obtain  regarding  the  economic  effects  which  the  canal  ) 
would  produce.  Besides  consulting  statistical  and  other  sources  of 
printed  information,  we  are  appealing  to  business  men  of  itEe  country 
and  to  consular  and  diplomatic  representatives  abroad.  We  are  also 
asking  the  larger  Chambers  of  Commerce  and  commercial  organiza- 
tions of  the  United  States  to  co-operate  with  us  in  the  investigation. 

The  general  purpose  and  the  basis  and  scope,  as  well  as  the  methods 
we  have  adopted,  are  indicated  by  the  inclosed  “Preliminary  Plan.” 

The  manner  in  which  we  should  like  to  have  the  New  Orleans 
Board  of  Trade  assist  us  is  as  follows:  We  should  like  to  have  you 
prepare  for  us  a statement  of  the  traffic,  in-bound  and  out-bouhd, 
which  the  merchants  of  the  City  of  New  Orleans  would  have  by  way 
of  an  American  Inter-Oceanic  Canal.  This  statement  should  cover 
the  various  classes  of  commodities,  the  volume  of  each  class  in  tons, 
and  the  approximate  value  of  each  class  and  for  the  total. 


P33550 


6 


New  Orleans  Board  of  Trade. 


Accompanying-  this  tabular  statement  we  should  like  to  have  you 
call  attention  to  the  effects  which  the  leading  industries  of  ISiew 
Orleans  would  derive  fi’om  the  opening  of  the  canal.  That  is  to  say, 
we  should  like  to  have  you  point  out  the  effects  which  would  follow 
the  opening  of  a canal. 

Wa  recognize  that  this  investigation  is  one  that  will  involve  con- 
siderable labor  and  expense  on  the  part  of  your  Board.  It  involves 
the  assignment  of  the  work  either  to  your  committee  on  foreign  trade 
or  to  some  committee  appointed  for  the  purpose,  which  committee 
would  be  required  to  devote  some  time  to  securing  and  collating  the 
information  desired. 

For  the  purpose  of  meeting  the  representatives  of  your  organiza- 
tion, and  of  those  in  other  cities,  I shall  leave  Washington  next  week, 
on  a trip  to  the  seaports  of  the  southeastern  part  of  the  United 
States.  I shall  be  in  New  Orleans  Friday  and  Saturday,  the  25th 
and  26th  of  May,  accompanied  by  Ex-Senator  Pascoe,  who  is  a mem- 
ber of  this  commission  and  of  the  committee  of  which  I am  chairman. 
I shall  be  pleased  to  have  you  bring  this  communication  before  the 
Board  of  Directors,  or  the  proper  committee  of  your  organization, 
and  arrange  for  me  to  meet  them  on  Friday,  the  25th. 

Assuring  you  that  the  co-operation  of  such  organizations  as  the 
Board  of  Trade  of  New  Orleans  will  be  of  much  assistance  to  this 
commission,  I am  veiy  respectfully  yours, 

Emory  E.  Johnsox, 

Chairman  Committee  on  the  Value  of  the  Canal. 
NEW  ORLEANS  BOARD  OF  TRADE,  LIMITED. 

New  Orle.yxs,  La.,  May  Sth,  1900. 

Professor  Emory  R.  Johnson,  Chairman  Committee  on  the  Value  of 
the  Canal,  Room  75,  Corcoran  Building-  Washington,  D.  C.: 

Dear  Sir. — Your  communication  of  May  3rd,  with  preliminary 
plan  enclosed,  was  duly  received,  and  has  had  prompt  attention. 

I have  appointed,  on  the  part  of  the  Board  of  Trade,  a Special 
Committee  of  forty-six  gentlemen  of  acknowledged  ability,  list  of 
same  herewith  enclosed,  with  copy  of  letter  sent  them,  showing  the 
importance  of  the  matter  in  charge  of  this  organization. 

We  are  in  hopes  that  the  data  will  be  ready,  awaiting  your  arrival. 

The  committee  will  be  pleased  to  have  you  and  Ex-Senator  Samuel 
Pascoe  address  them  on  this  important  subject,  .in  which  New 
Orleans  has  always  taken  a very  deep  interest. 

Yours  very  truly. 


Udolpho  Wolfe, 
President. 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal. 


n 


COPY  OF  LETTER  ADDRESSED  TO  EACH  MEMBER  OF  THE 

COMMITTEE. 

New  Orleans  Board  of  Trade,  Ltd. 

New  Orleans,  May  7th,  1900. 

Dear  Sir — 

The  Board  of  Trade  is  in  receipt  of  a communication  from  the 
United  States  Department  of  State  asking  that  a special  committee  be 
appointed  and  that  certain  infoianation  be  collated  by  the  time  of  the  ar- 
rival of  Professor  Emory  R.  Johnson,  Chairman  of  the  Special  Commit- 
tee on  the  Value  of  the  Isthmian  Canal,  who  is  accompanied  by  Ex- 
Senator  Samuel  Pasco,  also  a member  of  the  Commission.  These  gen- 
tlemen will  visit  this  city  during  the  latter  part  of  this  month ; the  25th 
and  26th ; they  will  investigate  the  advantages  which  will  flow  to  this 
city  as  a result  of  the  construction  of  the  canal.  They  will  address  our 
special  committee  of  the  Board  of  Trade  on  the  25th  of  this  month. 

The  object  of  this  explanation  is  that  I am  desirous  of  adding  your 
name  to  the  special  committee  of  the  Board  of  Trade,  which  is  charged 
with  the  important  work  mapped  out  for  us  by  the  commission  referred 
to. 

In  a matter  of  such  great  importance  to  the  City  of  New  Orleans,  the 
personnel  of  the  committee  should  not  be  confined  to  the  membership 
of  the  Board  of  Trade.  We  need  the  assistance  of  representative  men 
in  all  lines,  with  suggestions  as  to  the  probable  effect  upon  the  com- 
merce of  the  Mississippi  Valley. 

I hope  you  will  accept  servilce  on  this  committee,  of  which  Mr.  Sam- 
uel A.  Trufant  is  Chairman,  Hy.  H.  Smith  is  Secretary. 

The  committee  will  meet  at  3 p.  m.  Tuesday,  May  8th,  at  the  room 
of  the  Board  of  Trade  for  organization.  If,  for  any  reason,  it  is  im- 
possible for  you  to  accept,  please  advise. 

Yours  very  truly. 


Udolpho  Wolfe,  President. 


s 


New  Orleans  Board  of  Trade. 


COMMITTEE  APPOINTED  BY  THE  NEW  OELEANS  BOAKD 
OE  TRADE,  LIMITED,  ON  THE  INDUSTRIAL  AND 
COMMERCIAL  VALUE  OE  AN  INTER-OCEANIC  CANAL, 
UPON  REQUEST  OE  TLIE  UNITED  STATES  DEPART- 
MENT OF  STATE: 

Samuel  A.  Trufant.  Chairman. 


Henry  G.  Hester. 
Norman  McE.  Walker. 
Hunter  C.  Leake. 

M.  J.  Sanders. 

C.  C.  Harvey. 

Wallace  J.  Bostick. 
Garland  Wolfe. 

Prof.  W.  C.  Stubbs. 

R.  F.  Reynolds. 

Charles  Marshall. 

James  W.  Porche. 

Prof.  B.'V.  B.  Dixon. 
Hon.  Paul  Capdevielle. 
W.  F.  Braggins. 
Edmund  L.  Cope. 

Leon  Jastremski. 

W.  H.  Masters. 

Louis  Cormier. 

Paul  Christian. 

L.  C.  Fallon. 

Simon  Steinhardt. 

J.  R.  G.  Pitkin. 

Thos.  J.  Woodward. 


D.  D.  Colcock. 

Wm.  B.  Bloomfield. 

W.  H.  Matthews. 

B.  D.  Wood. 

Frank  A.  Daniels. 

Hugh  !McCloskey. 

S.  Locke  Breaux. 

Isidore  Hechinger. 
Charles  Janvier. 

Samuel  Geoghegan. 

Wm.  P.  Ross. 

Frank  W.  Breedlove. 
Jos.  A.  Ball. 

Julius  Keiffer. 

Ferd.  May. 

George  W.  Kelley. 
Charles  E.  Dirmeyer. 

H.  E.  Des  Bordes. 

E.  C.  Pei’kins. 

E.  W.  'Wilmot. 

Sidney  Story. 

J.  M.  Leveque. 

Hy.  H.  Smith,  Secretary. 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal. 


9 


EEMARKS  OF  PRESIDENT  UDOLPHO  WOLFE  IN  CALLING 
TO  ORDER  TILE  MEETING  HELD  IN  TILE  BOARD  OF 
TRADE  ROOMS  MAY  25th,  1900,  WHEN  THE  REPORTS 
CONTAINED  IN  THESE  PAGES  WERE  SUBMITTED. 

Gentle^ien. — The  object  of  this  meeting  is  to  receive  the  report  of 
the  committee  on  the  Industrial  and  Commercial  Value  of  an  Inter- 
Oceanic  Canal.  We  have  with  us  to-day  two  distinguished  citizens 
from  Washington,  members  of  the  Inter-Oceanic  Canal  Commission, 
who  are  here  to  receive  your  report,  and  to  address  this  meeting  on 
the  subject. 

Professor  Johnson. — When  your  letter  was  received  two  short  weeks 
ago  conveying  to  ithe  Board  of  Trade  the  gratifying  information  that 
you  would  pay  us  a visit,  accompanied  by"^  Senator  Pascoe,  we  were 
delighted.  New  Orleans  always  welcomes  the  stranger  within  her 
gates,  and  when  they  come  on  a mission  such  as  yours,  they  are 
doubly  welcome  to  this  city  and  within  these  rooms.  Llowever,  when 
you  asked  that  we  prepare  for  you  a report  upon  the  advantages  ito 
accrue  to  this  city  and  section  from  the  l^uilding  fef  an  Isthmian 
Canal,  we  were  appalled  at  the  labor  which  the  formulaition  of  such 
a report  entailed.  But  so  impressed  were  we  with  the  importance  of 
the  enterprise,  and  so  dear  has  it  always  been  to  our  hearts,  that  we 
determined  to  undertake  the  work,  feeling  that  should  we  fail  we 
would  fail  in  a magnificent  cause.  It  is  true  the  time  was  short,  and 
the  labor  greaii,  but  in  the  experience  of  our  Board  of  Trade  the  hour 
and  the  occasion  have  always  brought  forth  the  men. 

I immediately  formed  a committee  selected  from  our  own  member- 
ship, and  called  upon  the  newspaper  editors,  several  prominent  mem- 
bers of  other  commercial  instiitutions,  as  well  as  a few  public-spirited 
citizens,  to  lend  us  their  aid.  The  committee  numbered  forty-six 
members  who  responded  quickly  and  earnestly.  They  organized  by 
dividing  into  sub-committees  and  parcelled  out  the  work.  To-day 
they  bring  it  here  to  you  in  completed  form.  How  well  they  have 
performed  their  duity,  and  how  loyal  they  have  been  to  their  trust, 
remains  for  you  to  determine. 

I want  to  say  that  the  Board  of  Trade  has  always  taken  a deep 
interest  in  this  subject  of  an  Inter-Oceanic  Canal.  It  has  endorsed,  Jc 
time  and  time  again,  the  route  advocated  by  Senaitor  Morgan,  of 
Alabama,  but  whatever  route  may  be  selected  will  make  but  little 
difference  to  us,  as  any  Isthmian  Canal  will  greatly  benefit  the  com- 
merce and  trade  of  this  city  and  ithe  country  back  of  it. 

I should  like  to  address  a few  words  to  the  members  of  the  com- 
mittee before  I close.  In  the  name  of  the  Board  of  Trade,  I thank 
you  for  the  magnificent  work  you  have  done.  You  have  made  a 
record  which  will  live  after  you;  a work  of  which  you  and  your 
children  will  be  proud.  When  these  pages  are  gathered  together  and 
have  passed  through  the  hands  of  the  binder,  they  become  the  prop- 


10 


New  Orleans  Board  of  Trade. 


erty  of  the  general  government,  and  •will  find  a place  in  the  archives 
of  the  nation.  I have  faith  in  the  influence  for  good  -which  your 
work  will  exercise.  I believe  that  an  Istlunian  Canal  will  be  con- 
structed, and  that  it  Avill  give  new  life  to  the  commerce  and  cause  the 
upbuilding  of  ilhis  port;  and  that  New  Orleans  will,  in  the  near 
future,  be  the  pride  of  the  country.  These  i)roceedings  will  he  re- 
ported to  the  Directors  of  this  Board  who  will,  undoubtedly,  cause  a 
record  of  their  appreciation  to  be  entered  on  the  minutes  of  the 
association,  as  a tribute  ito  your  unselfish  and  most  excellent  work. 

GENERAL  REPORT,  AS  PRESENTED  BY  S.  A.  TRUFANT, 
CHAIRMAN,  ON  THE  INDUSTRIAL  AND  COIMMERCIAL 
VALUE  OE  AN  INTER-OCEANIC  CANAL. 

Mr.  President,  Ee present atives  of  the  Department  of  State,  and  Gentle- 
men— 

Your  committee,  in  reporting  upon  the  value  of  an  Inter-Oceanic 
Canal,  will  deal  with  the  question  purely  from  a commercial  poiirt  of 
view  as  to  its  probable  effect  upon  the  industries,  domestic  and  foreign 
commerce  of  the  Vallies^of  the  Ohio,  Mississippi,  the  Gulf  ports  and 
the  Southern  States.  We  shall  avoid  any  comparison  of  routes  or  any 
discussion  of  international  law  or  treaties  to  be  hereafter  determined 
by  our  representatives  in  Congress.  We  have  every  confidence  that 
the  policy  of  our  government  will  continue  to  keep  this  Western 
Hemisphere  free  for  peaceful  commerce,  and  that  we  shall  not  have 
to  ask  the  consent  of  anybody  in  Europe  to  pemiit  access  to  our 
markets  through  the  American  Canal  for  the  combined  commerce  of 
the  world.  We  shall  not  argue  the  necessity  of  this  Isthmian  Canal 
from  a naval  or  militarj'  point  of  view,  but  the  delaj’s  and  risks  in 
bringing  the  Oregon  around  the  Horn,  and  the  extra  time  hazarded  in 
sending  our  troops  by  transport  via  the  Suez  Canal  to  the  Philippines, 
has  impressed  upon  the  minds  of  all  classes  of  our  people,  the  import- 
ance of  a naval  hase  of  supplies  in  the  Gulf  of  Mexico  and  the  abso- 
lute necessity  for  increased  facilities  in  sending  our  flag  and  com- 
mence to  the  Pacific  (and  trade  always  increases  in  proportion  to 
facililties).  The  effect  of  the  Isthmian  Canal  will  be,  quoting  Napo- 
leon III,  “Europe  would  gain  47  days  in  voyage  to  the  West  Coast  of 
America,  and  the  United  States  would  gain  62  days.  To  China  and 
Sidney,  Europe  would  gain  29  daj's,  and  LTnited  States  24  days.” 

The  Xondon  Times  said,  in  1872,  quoting  from  report  of  S.  T. 
Albert,  civil  engineer,  “From  Suez  to  Ceylon,  the  -winds  are  unfavor- 
able. From  Point  de  Galle  to  Swan  river,  terrible  hurricanes  sweep 
the  Indian  Ocean.  Along  the  Coast  of  New  South  Wales,  violent 
winds  prevail  from  Westward,  causing  a prodigious  sea  to  arise  which 
ncarlj'-  precludes  navigation  in  tha*  direction.”  This  writer  says, 
further,  “By  way  of  Good  Hope  the  route  is  beset  by  gales,  rendering 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal. 


11 


the  return  voyage  a matter  of  great  uncertainty,  whereas,  by  the 
American  I&’ihmus,  going  or  returning,  smooth  seas  may  be  counted 
upon  with  precision.”  In  selecting  a route  for  rapid  voyage,  naviga- 
tors Avould  likely  be  governed  by  facts  of  physical  geography,  and  the 
American  route,  hath  going  and  coming,  would  have  the  preference. 
It  is  not  as  rivals  that  the  two  routes  should  be  com.pared,  but  as  part 
of  the  same  system.  The  effedt  of  each  (the  Suez  and  American)  is 
doubled  by  the  effect  of  both — one  is  favorable  to  outward  bound,  and 
the  other  homeward  bound.  We  shall  consider  the  trade  of  England 
and  Continental  Europe  with  the  Orient  via  Suez,  as  against  the  pos- 
sibilities of  trade  in  raw  cotton  and  manufacturers’  products  from  the 
cotton  States ; grain,  flour,  foodstuffs  and  hog  products  from  the  Mis- 
souri river;  agricultural  machinery  and  coal  from  the  Ohio  river; 
iron  and  coal  from  Alabama  and  Tennessee ; manufactured  goods  from 
Chicago,  St.  Louis,  Louisville  and  other  large  manufacturing  centers ; 
lumber  from  Texas,  Louisiana,  Mississippi  and  Florida,  and  the  pos- 
sibility of  landing  direct  into  these  markets,  with  but  one  tranship- 
ment, silks,  teas,  spices  and  fabrics  of  China,  Japan,  India  and  the 
Pacific  Islands,  at  perhaps  one-third  the  cost  via  San  Francisco  and 
rail.  Figuring  the  cost  of  transportation  by  rail  from  San  Francisco 
to  Chicago,  three  to  six  cents  per  ton,  x^er  mile;  toll,  Suez  Canal,  $2 
per  ton;  against  toll.  Isthmian  Canal,  $1  per  ton. 

The  cost  of  the  Suez  Canal  was  $80,893,665 ; average  per 
mile,  $808,936.  The  saving  in  distance  to  the  trade  of 
Europe  via  the  Suez  Canal  to  the  Orient,  was  only  3,600 
miles,  and  the  value  of  conunerce  likely  to  be  effected  was  esti- 
mated at  only  about  $400,000,000.  The  Suez  Canal  was  an  experi- 
ment; the  tonnage  through  the  canal  for  1869  was  only  637,440  tons, 
but  increased  to  8,500,000  Itons  in  1891,  and  at  this  time  the  annual 
income  is  something  like  $16,000,000. 

In  a Congressional  report  of  1897,  we  find  the  trade  likely  to  pass 
through  the  American  Isthmian  Canal,  estimated  in  detail,  giving  a 
total  of  $825,110,167,  and  competent  authorities  place  the  tonnage,  for 
the  first  twelve  months,  at  9,000,000  tons.  But  estimating 
only  5,000,000  tons  to  start,  (and  it  is  safe  to  double  that 
in  ten  years),  it  is  reasonably  certain  that  at  $1  per  ton, 
the  total  would  yield,  in  that  period,  over  $75,000,000.  But 
the  most  important  consideration  is  the  great  saving  to  the 
commercial  world  in  interest,  insurance  on  vessels  and  cargo,  wear 
and  tear,  wages  and  provisions.  We  find  this  item  on  basis  of  the 
commerce  of  1872,  is  figured  at  $50,000,000  per  annum.  Certainly, 
with  the.  enormous  increase  in  trade  of  to-day,  $100,000,000  would 
not  be  too  much  to  estimate  as  a saving  per  annum.  The  voyage  by 
water  from  New  Orleans  to  China  and  Japan  would  be  shortened 
about  5,000  miles;  New  York  to  gan  Francisco  shortened  8,267  miles; 
New  Orleans  to  San  Francisco  shortened  9,392  miles;  New  Orleans  to 


12 


Neiu  Orleans  Board  of  Trade. 


Callao  shortened  7,021  miles;  New  York  to  Callao  shortened  5,80G 
miles;  New  Orleans  to  the  east  point  of  the  canal,  taking  the  Nicar- 
aguan route,  would  be  only  1,300  miles ; west  point  of  the  canal  to  San 
Francisco  would  be  only  2,700  miles. 

Certainly  commerce  will  be  affected  by  these  great  savings  in  dis- 
tances. but  to  what  e.Nllent  American  thrift,  energy,  enterprise  and 
inventive  genius  will  revolutionize  the  slow  and  easy  self-contented 
and  “happy-go-lucky”  methods  of  these  new  foreign  neighbors,  can 
only  be  predicated  upon  the  facts  which  our  report  in  detail  will  show 
as  to  the  expansion  of  our  trade  in  the  last  ten  years.  On  this  subject, 
“Bradstreet’s”  says : 

“It  is  now  apparent  that  in  all  the  great  classes  of  our  exports  the 
record  of  the  year  1900  will  exceed  that  of  any  earlier  year.  In  the 
nine  months  ending  with  March  expoilts  of  agricultural  products  were 
$18,000,000  greater  than  those  of  the  corresponding  months  of  1899; 
manufactures  were  $70,000,000  greater  than  were  those  of  the  same 
months  in  the  preceding  fiscal  year;  products  of  the  mine  exceeded 
those  of  the  corresponding  moniths  of  1899  by  33  per  cent. ; those  of  the 
forest  showed  a like  increase,  and  products  of  the  fisheries  and  miscel- 
laneous products  also  showed  a gain  over  the  corresponding  months  of 
the  preceding  fiscal  year.  For  the  ten  months  of  the  present  fiscal 
year  the  exports  aggregate  $1,172,736,685.  If  the  exponts  in  May  and 
June  only  equal  those  of  1899  a total  of  $1,363,000,000  of  fiscal  year 
exports  is  probable,  and  the  outlook  at  present  is  that  this  sum  will  be 
under  rather  than  over  the  mark,  making  it  plain  that  the  prediction 
in  these  columns  some  months  ago  of  a total  of  $1,350,000,000  of  ex- 
ports will  be  below  rather  than  above  the  actual  outcome.” 

England’s  trade  increased  enormously  from  the  adoption  of  steam 
in  transpoUtation  and  as  an  aid  in  the  manufacture  of  fabrics,  but  the 
following  quotations  from  consular  reports  of  May,  will  be  interesting 
in  this  connection.  In  a recent  report  United  States  Consul  James 
Boyle,  at  Liverpool,  says  in  relation  to  the  superiority  of  American 
manufactures : 

“There  have  recently  been  a number  of  communications  and  articles 
in  the  Liverpool  papers  drawing  attention  to  the  fact  that  American 
manufacturers,  particularly  in  specialties,  had  been  accepted  by 
English  purchasers  in  preference  to  those  of  home  production 
* * * American  manufacturers  can  now  find  plenty  of  champions 
in  England  who  base  their  support  on  the  ground  of  actual  superiority, 
both  of  workmanship  and  adaptability.  This  concession,  the  Consul 
continues,  has  just  been  significantly  emphasized  by  the  publication 
in  semi-ofiicial  form  of  the  follow^g  letter  received  by  ithe  Liverpool 
Chamber  of  Commerce  from  a well  known  business  man :” 

“I  desire  to  submit  for  your  consideration  a summary  of  the  obser- 
vations which  I have  made  during  n^  close  association  with  colonials 
for  a period  of  seven  years  spent  in  Africa,  Australia,  and  Canada, 
and  during  a brief  visit  to  the  States. 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal. 


13 


“I  have  found  tliat  American  and  German  manufacturers  are  grad- 
ually ousting  us  from  all  these  markets.  This  truth,  irrefutable  from 
statistics,  is  scarcely  api)reciated  at  a time  of  world-wide  prosperity, 
but  it  will  make  itself  unpleasantly  obvious  when  the  inevitable 
reaction  sets  in.” 

In  reference  to  European  and  American  competition,  Mr.  E.  L. 
Harris,  our  Consular  agent  at  Eibenstock,  Germany,  reports  that; 

A recent  article  by  George  Wenlersse  in  the  Grande  Revue  says, 
in  part : 

“The  danger  is  already  at  our  threshold  and  is  making  itself  felt. 
Brutal  figures  prove  this  fact  most  conclusively.  A revolution  which 
will  change  the  commercial  balance  of  power  is  taking  place  before  our 
eyes.  Until  recent  years,  the  Americans  have- been  the  best  customers 
of  European  industries;  they  are  now  our  competitors,  and  in  very 
many  branches  have  beaten  us  in  the  world’s  markets.” 

Mr.  Wenlersse  pays  especial  attention  to  the  foothold  which  Ameri- 
can manufacturers  have  gained  in  the  far  East.  The  United  States 
has  succeeded  in  flooding  China  and  Japan  with  guns,  leather  products 
of  all  kinds,  machines  of  every  description,  electrical  motors,  etc. 

“Gradually  the  Americans  are  pushing  their  way  into  the  British 
colonies.  The  last  railroad  built  in  India  has  American  rrfils.  Ameri- 
can manufacturers  export  their  iron  and  motors,  their  machinery,  and 
galvanic  wires  to  Cape  Colony.  Egypt,  too,  has  Philadelphia  bridge 
builders  on  the  scene.  Three  hundred  railroad  coaches  have  found 
their  way  from  Jersey  City  into  the  land  of  the  Pharaohs,  and  elec- 
trical tramways  are  forged  in  the  foundries  of  Pittsburg  ito  connect 
Cairo  with  the  pyramids.  Even  Europe  is  not  safe  against  the  inva- 
sion of  American  goods.  Russia,  France,  Germany,  and  Italy  must 
pay  tribute.  England  herself  buys  American  locomotives,  steel  rails, 
paper  ware,  railroad  coaches,  and  even  coal.  Sheffield,  the  home  of  the 
steel  industry,  has  been  dethroned  by  Pittsburg.  It  would  be  frivolity 
itaelf  to  remain  indifferent  to  the  expansion  of  this  leviathan  people.” 

We  have  reached  our  present  position  without  special  effort  on  the 
part  of  our  manufacturers.  Our  export  trade  is  in  its  infancy. 

If  this  be  the  case,  under  present  e.xpensive  methods  of  transporta- 
tion, what  would  result  from  the  completion  of  an  Isthmian  Canal 
(especially  by  way  of  Nicaragua),  and  the  resulting  decrease  freight 
charges  especially  for  bulky  articles  of  trade? 

The  growth  of  our  railroad  system,  the  opening  to  navigation  of  our 
interior  waterways,  improvement  of  our  harbors  and  passes,  has 
brought  this  whole  country  into  an  intimate  exchange  of  the  products. 
The  rivers,  having  their  natural  outlet  into  the  Caribbean  sea  and 
Gulf  of  Mexico,  bring  into  commercial  union  all  the  commodities  of 
the  world.  The  entire  area  of  basin  drained  into  these  two  seas,  ac- 
cording to  Berghaus’  map,  is  4,245,000  square  miles,  and  Lieutenant 
Maury  refers  to  these  two  American  seas  as  the  heart  of  the  continent ; 


14 


New  Orleans  Board  of  Trade. 


cut  ail  artery  (through  the  Isthmus),  and  we  shall  supply  from  this 
heart  a stream  of  life,  of  commerce  to  the  west  coast  of  North  and 
South  America  and  over  the  Pacific  ocean,  like  another  gulf  stream 
bearing  the  fruits  of  American  industry,  American  genius  and 
American  civilization,  to  the  shores  of  the  Orient,  and  beyond  ithe 
walls  of  China,  trade  will  carry  with  it  harmonizing  influences  and 
enlightenment ; and  what  is  Christianity,  but  love — love  which  is  born 
of  knowledge  and  confidence  ? 

Mr.  President,  your  committee  have  found  it  quite  impossible  to 
furnish,  in  the  short  time  accorded  us,  all  the  data  requested  by  the 
Department  of  State.  However,  we  have  allotted  the  work  to  four 
sub-committees. 

Mr.  Henry  G.  Hester,  secretary  of  the  New  Orleans  Cotton 
Exchange,  has  prepared  a very  interesting  report,  showing  the  prob- 
able effect  of  an  American  Canal  on  our  cotton  industry.  No  man  is 
better  qualified  to  speak  wuth  authority  on  this  subject,  and  his 
presentation  will  be  entirely  an  original  document,  as  statistical  in- 
formation of  such  value  could  not  be  obtained  from  any  other 
source. 

ilr.  Norman  Walker,  a leading  editorial  writer  on  the  Titnes-Demo- 
crat,  with  the  assistance  of  Mr.  Garland  Wolfe  and  others  of  his  com- 
mittee, will  treat  of  exports  and  imports  other  than  cotton. 

Mr.  J.  Wallace  Bostick,  commercial  editor  The  Picayune,  with  the 
assistance  of  the  representatives  of  our  six  trunk  lines  of  railroads  and 
our  river  transportation  lines,  has  elaborately  presented  our  facilities 
for  bringing  to  New  Orleans  the  agricultural,  mineral  and  manufac- 
tured products  from  the  valleys  of  the  Mississippi,  Ohio  and  Missouri. 

Mr.  M.  J.  Sanders,  with  Mr.  L.  C.  Fallon,  Captain  Cope  and  others, 
has  presented  the  question  as  it  relates  to  ocean  traffic. 

In  these  appended  reports  we  have  endeavored  to  treat  on  the  fol- 
lowing subjects: 

First.^ — Trade  of  countries  on  Pacific  coast  of  South  America. 

Second. — Trade  of  islands  in  Pacific. 

Third.- — Trade  of  Japan,  China,  etc. 

Fourth. — Present  proportion  of  trade  from  Pacific  ports  of  South 
America,  Islands  of  the  Pacific,  Japan,  China,  etc.,  with  United 
States. 

Fifth. — Character  of  goods  received  at  and  shipped  from  United 
States. 

Sixth. — What  part  of  such  goods  may  be  supjdied  from  or  is  con- 
sumed by  the  Mississippi  arid  Ohio  valleys  and  Southern  States. 

Seventh. — Effect  of  canal  in  bringing  about  close  direct  relations 
between  the  Mississippi  and  Ohio  valleys  via  New  Orleans,  and,  in 
fact,  entire  sections  tributary  to  New  Orleans  and  other  gulf  ports. 

Eighth. — New  Orleans,  practically  the  gateway  for  goods  via  the 
canal,  now  does  a small  business  with  Pacific  ports  and  countries  by 


15 


Report  on  C om.mercial  Value  of  an  Inter-Oceanic  Canal. 

reason  of  unfavorable  location.  With  the  American  Canal  our  loca- 
tion will  be  all' that  could  be  desired. 

Ninth. — Probable  development  of  manufactures  in  the  Ohio  and 
Mississippi  valleys  and  the  South  by  reason  of  enormously  increased 
trade  relations  with  countries  to  be  reached  through  the  American 
Canal. 

Tenth. — Trade  in  coal  and  lumber. 

Eleventh. — Cotton  goods. 

Twelfth. — Iron  and  manufactures  of. 

Thirteenth. — Eeduction  of  distance  between  United  States  and 
consumers  of  the  far  East  will  be  a natural  protection  for  American 
goods  and  largely  contribute  towards  bringing  to  us  much  of  the 
trade  now  enjoyed  by  England,  Germany  and  other  European 
countries. 

Fourteenth. — Cheaper  goods  means  increased  trade,  and  it  may  be 
reasonably  expected  that  by  reason  of  the  impetus  from  this  cause, 
trade  of  the  Pacific  countries  as  a whole,  and  particularly  with  the 
United  States,  will  be  enormously  enlarged. 

Fifteenth. — While  the  United  States  as  a whole  will  be  enor- 
mously benefitted.  New  Orleans  must,  as  a naturally  leading  ship- 
ping point,  reap  a large  share. 

Sixteenth. — Water  competition  from  New  Orleans  via  the  canal 
will  act  as  a freight  regulator  for  shipments  via  Pacific  coast,  as  the 
Mississippi  river  now  does  to  shipments  across  the  countiy  east- 
ward. 

Seventeenth. — While  the  increased  trade  relations  with  the  Pacific 
ports  and  countries  will  greatly  enlarge  traffic  by  all  routes — rail  and 
canal — the  people  of  the  entire  West  and  South  will  be  correspond- 
ingly benefitted. 

Eighteenth. — The  canal  will  not  unfavorably  affect  transconti- 
nental lines,  since,  besides  having  a growing  local  business,  they 
will  not  only  find  that  enlarged  by  the  increased  prosperity  of  their 
respective  sections,  but  will  have  a share  of  the  enormous  flow  of 
business,  which  must  inevitably  result  from  the  closer  relations  be- 
tween the  United  States  and  Pacific  imrts  and  countries. 

Nineteenth. — Finally,  New  Orleans,  from  her  location,  will  stand 
towards  such  cities  as  St.  Louis,  Kansas  City,  Cincinnati,  Louisville, 
etc.,  and  the  sections  tributary  thereto,  for  the  Pacific  trade,  as  New 
York  now  stands  to  the  country  in  relation  to  traffic  across  the 
Atlantic. 

Note. — Your  committee  desires  to  acknowledge  the  co-operation 
of  Mr.  William  Peer,  librarian  Howard  Memorial  Library,  who  has 
placed  at  our  disposition,  from  the  records  of  the  library,  a valuable 
collection  of  data  on  this  subject. 


16 


New  Orleans  Board  of  Trade. 


REPOET  OF  THE  SUB-COMMITTEE  ON  TFIE  COTTON 
TRADE  OF  THE  UNITED  STATES,  AND  AN 
ISHMIAN  CANAL. 

As  a great  cotton  market  New  Orleans  and  the  section  tributary 
therto,  as  well  as  the  other  Gulf  ports  and  the  country  adjacent,  will 
be  largely  benefitted  by  the  compleixon  of  an  Isthmian  Canal.  The  re- 
markable growth  of  the  cotton  industry  of  Japan,  which  is  still  in  its 
infancy,  is  an  earnest  of  what  may  be  expected  in  the  future  in  the 
way  of  a demand  for  raw  cotton  to  feed  the  mills  of  the  far  East. 

Given  in  bales  of  500  pounds  each,  statistics  show  that  in  1887  Japan 
imported  the  equivalent  of  28,400  bales  of  raw  cotton;  by  1895  the 
total  Irad  risen  equal  to  380,000  hales,  and  by  1898  to  660,000  bales. 

In  1895  China  furnished  57.3  per  cent  of  the  total  imports  of  raw 
cotton  into  Japair,  Britisli  India  32.5  per  cent,  the  L'nited  States  8.4 
per  cent  and  other  countries  1.8.  In  1898  the  impoi"ts  from  China  liad 
dropped  to  11.1  per  cent,  while  those  from  British  India  had  increased 
to  56.3  and  from  the  United  States  to  30.8,  other  couirtries  remaining 
stationary  at  1.8. 

We  are  unable  lio  obtain  full  data  for  the  current  year,  but  the 
facts  when  known  will  undoubtedly  show  a still  greater  improvement 
in  favor  of  the  use  of  American  cotton.  In  1898,  according  to  a table 
recently  published  by  the  Bureau  of  Statistics  of  the  Treasury  De- 
partment, from  which  the  above  percentages  are  taken,  the  L'nited 
States  contributed  ito  Japan’s  imports  tire  equivalent  of  203,000  bales. 
For  the  first  eiglit  months  of  the  current  season,  we  have  ex^jorted  to 
Japan  about  300,000  bales. 

The  poor  results  obtained  from  other  cotton,  especially  that  of 
China,  leads  our  Eastern  neighbors  towards  increased  favor  of  that 
grown  in  this  country. 

For  so  buUvy  an  article  water  transportation  is  of  the  greatest 
moment,  the  item  of  freight  involving  so  heavy  a percentage  to  cost 
that  its  increase  or  decrease  determines,  to  an  unusual  degree,  the 
question  of  destination.  It  is  for  this  reason  that  an  Isthmian 
Canal,  by  affording  an  all-water  route  and  cheaper  freight  rates  to  the 
countries  of  the  East,  will  not  only  largely  increase  their  consump- 
tion of  our  raw  cotton,  which  on  the  whole  is  the  most  desirable  of  any 
description  gro-nm,  but  will  lead  to  the  greatest  percentage  of  it  being 
shipped  by  the  Gulf  ports.  The  current  season  illustrates  what  will 
probably  result  from  an  Isthmian  Canal.  Of  the  300,000  bales  given 
above  as  shipped  this  season,  169.000  went  from  the  United  States 
ports  on  the  Pacific,  87,000  from  Gulf  ports  (New  Orleans,  Galveston 
and  Pensacola),  and  44,000  from  Atlantic  ports  (New  York  and 
Savannah).  The  cotton  via  the  the  Pacific  ports  stood  the  rail  trans- 
portation westward  overland  from  the  cotton  fields,  and  thence  by 
water  across  the  Pacific.  That  from  Gulf  and  Atlantic  ports  crossed 


Report  on  Commercial  Value  of  an  Inter-0 ceanic  Canal. 


11 


the  Atlantic  ocean,  passing  through  ithe  Suez  Canal  to  final  destina- 
tion, bearing  water  transportation,  much  in  excess  of  that  via  an 
Isthmian  Canal,  if  built.  Both  routes  tremendously  long  and  enor- 
mously expensive.  If  trade  can  increase  under  such  conditions,  what 
will  it  be  under  the  favoring  results  of  an  Isthmian  Canal? 

But  while  the  cotton  planters  of  the  South,  and  the  Southern  ports 
(especially  those  of  the  Gulf),  would  reap  great  benefits  from 
improved  demand  and  increased  shipments  of  the  raw  material,  by  far 
the  greatest  benefits  would  be  derived  through  the  manufactured 
article.  At  i^resent  the  export  of  cotton  goods  from  the  United  States 
is  a drop  in  the  bucket  compared  with  that  of  other  countries.  Aside 
fro-m  home  consumption,  the  manufacturers  of  Europe  export  some- 
thing like,  $476,000,000  in  values  of  cotton  goods.  The  United  States 
exports  (in  round  figures)  but  $24,000,000,  and  even  that  total  is  far 
above  the  average  of  the  past  ten  years,  for  in  1890  it  was  but 
$10,000,000;  in  1895,  $14,000,000;  in  1898,  $17,000,000,  and  in  1899, 
$24,000,000.  Round  figures  are  given  because  they  conduce  to  a 
clearer  comprehension  of  facts,  as  a whole.  But  we  are  more  directly 
interested  in  the  cotton  goods  trade  with  the  far  East,  and  the  effect 
thereon  of  an  Isthmian  Canal.  We  have  nolt  convenient  tlie  figures  of 
this  trade  from  Continental  Europe.  Those  of  Great  Britain,  how- 
ever, will  be  sufficient  for  our  pui-pose. 

In  1899  Great  Britain  exported,  of  all  kinds  of  cotton  goods,  to  the 
value  of  £67,556,000,  or  say  over  $330,000,000.  Of  this  total 
£58,931,000  were  piece  goods  and  yarns.  Forty-two  and 
sixty-four  one  hundreths  per  cent,  of  the  piece  goods  were 
to  British  East  India,  and  16.06  per  cent,  were  to  China,  Japan, 
Java,  etc.,  or  say  in  all  68.70  per  cent,  were  to  the  East.  Of  the 
exports  of  yam  19.41  per  cent,  were  to  British  East  India,  and  11.21 
per  cent,  to  China,  Japan,  etc.,  making  a total  to  ithe  East  of  30.62 
per  cent.  In  short.  Great  Britain  shipped  more  than  one-half  of  the 
piece  goods  she  manufactured,  and  nearly  one-third  of  the  yarns,  to 
countries  which  will  be  rendered  easy  of  access  to  us  by  water  on  the 
completion  of  an  Isthmian  Canal.  This  trade  in  piece  goods  and 
yarns  of  Great  Britain  with  the  East,  in  1899,  was  valued  at  over 
32,000,000  pounds  sterling,  or  more  than  $155,000,000,  an  amount  ex- 
ceeding fifty  per  cent,  of  the  value  of  the  United  States  cotton  crop 
of  1898-99. 

It  is  this  trade  for  which  an  Isthmian  Canal  will  aid  us  to  success- 
fully compete.  To-day  its  value  to  us  is  not  quite  twelve  and  a 
quarter  millions  of  dollars,  or  less  than  eight  one  hundreths  of  what 
Great  Britain  enjoys.  And  yet  we  have  the  advantage  of  location  of 
raw  material,  practically  at  the  mill  doors  (especially  in  the  South), 
the  latest  improved  machinery  and  labor-saving  apparatus  in  our 
mills,  and  the  most  intelligent  and  able  class  of  labor,  which,  if  paid 
higher  than  that  of  foreign  countries,  yields  greater  returns  in  both 
quantity  and  quality  of  work. 


18 


Neiu  Orleans  Boar-d  of  Trade. 


Great  Britain  paid,  in  1899,  £30,470,000,  or  say  about  $148,000,000 
for  raw  cotton,  and  from  that  she  manufactured  goods  to  the  extent 
of  about  £85,000,000,  or  say  about  $413,000,000,  the  difFerence  repre- 
senting wages  for  British  workmen,  interest  on  capital  invested  in  the 
cotton  milling  industry,  and  profit.  Kearly  five-sixths  of  this  was 
from  American  cotton.  A fair  estimate  will  show  as  much  more  for 
Continental  Europe. 

It  is  to  secure  a part  of  this  handsome  excess  over  the  cost  of  the 
raw  material  that  it  is  desirable  the  manufacturer  of  American  cot- 
ton should  be  placed  on  a healthier  and  more  lasting  basis.  To  do 
this  we  must  have  a more  favorable  outlet  for  exports,  and  none  can 
be  found  better  than  through  facilities  afforded  by  an  Isthmian 
Canal.  The  American  mills,  ISTorith  and  South,  took,  in  the  year  1890, 
2,346,000  bales,  and  of  this  the  census  of  that  year  tells  us  2,259,000 
bales  were  consumed.  In  1899  American  mills  consumed  3,589,000, 
or  1,330,000  bales  more.  Our  mills  now  turn  out  more  goods  than 
necessary  for  this  country  alone,  and  it  is  essential  to  their  prosperity 
that  export  facilities  be  had  that  will  enable  them  to  compete  success- 
fully with  other  countries  in  the  great  markets  of  the  world,  especially 
those  of  the  far  East.  To  the  Southern  States  particularly,  which 
have  increased  their  consumption  from  547,000  bales,  in  1890,  to 
1,400,000,  in  1899,  and  give  promise  of  still  greater  progress  in  the 
near  future,  an  outlet  through  an  Isthmian  Canal  is  of  the  last  im- 
portance. Given  such  an  outlet,  affording  cheap  competitive  transpor- 
tation and  ready  foreign  markets  in  the  Pacific  countries,  and  the 
entire  cotton  manufacturing  industry  of  the  United  States,  will  reap 
substantial  benefit.  The  hundreds  of  millions  of  dollars  thus  in- 
vested will  be  made  to  yield  safe  and  profitable  returns  and  ample 
room  will  be  afforded  for  doubling  the  industry.  Without  a proper 
export  outlet  a serious  clash  between  the  manufacturers  of  the  South 
and  other  sections  is  inevitable  sooner  or  later. 

The  South,  as  stated,  is  steadily  and  largely  increasing  her  capacity 
as  a manufacturer  of  her  own  cotton.  In  a few  years  this  section  will 
exceed  the  rest  of  the  country.  Either  a safe  and  healthy  outlet  over 
and  above  the  domestic  demand  must  be  afforded  the  increased  output, 
or  ithe  result  must  be  disastrous  to  the  industry.  As  stated  before, 
this  outlet  is  now  but  a drop  of  water  to  many  gallons,  compared  to 
what  it  should  be.  With  an  Isthmian  Canal  the  Gulf  ports  would 
prove  the  natural  channels  of  large  quantities  of  the  goods  trans- 
ported to  Pacific  countries,  and  they,  in  common  with  the  Southern 
States,  are  directly  and  deeply  interested. 

To-day  the  raw  material  is  transported  over  tliree  thousand  miles 
across  the  Atlantic,  there  manufactured  and  then  sent  in  its  altered 
form  to  its  final  destination  in  the  far  East.  From  Europe  via  the 
Suez  Canal  to  many  important  points  in  the  East  is  shorter  than  from 
the  United  States  via  an  Isthmian  Canal,  but  with  exceeding  4,000 


Report  on  Coifimercial  Value  of  an  Inter-Oceanic  Canal. 


19 


miles  from  the  cotton  helds  of  America  to  Europe  added,  over  wliich 
the  bulky  raw  material  must  he  transported  to  the  foreign  manufact- 
urer, the  advantage  of  location  is  decidedly  in  our  favor.  It  is  a 
natural  protection  that  would  weigh  heavily  in  securing  to  us  victory 
in  the  competition  for  trade.  Kew  Orleans,  Galveston,  ilobile,  Pensa- 
cola, and,  in  fact,  every  Southern  city  and  every  Southern  State;  their 
merchants,,  farmers  and  manufacturers,  have  their  future  welfare 
closely  allied  to  the  successful  completion  of  an  Isthmian  Canal.  It 
means  increase  in  values  to  the  extent  of  many  thousand  millions  of 
dollai's,  bringing  in  their  train  happiness  and  prosperity  to  the  nation 
at  large,  such  as,  it  has  never  yet  known,  even  with  the  wonderful 
advances  shown  in  the  past. 

IIbnry  G.  Hester, 
Chairman  Suh-Committee. 

EEPORT  OF  THE  SUB-COMMITTEE  OH  IMPORTS  AND 
EXPORTS  OTHER  THAN  COTTON. 

The  countries  that  will  be  affected  by  the  construction  of  an  Isth- 
mian Canal,  as  far  as  New  Orleans  is  concerned,  are  all  those  on  the 
Pacific,  east  and  north  of  Singapore,  and  the  “Straits  Settlements,” 
including  all  those  of  the  Pacific  coast  of  North  and  South  America, 
all  the  islands  of  the  Pacific,  including  Japan,  the  Philippines,  New 
Zealand,  Australia,  Java  and  the  other  Dutch  Indies.  The  distance 
saved  on  the  all-water  route  to  these  points  ranges  from  10,855  miles, 
for  Amapala  in  Central  America  to  4,351  miles  for  Valparaiso  in 
Chili. 

For  all  points  south  or  west  of  Singapore,  the  Suez  Canal  is,  and 
always  will  be,  the  shorter  route  by  water  from  New’  Orleans.  It  may 
be  that  American  commerce  will  prefer  the  American  canal,  as  the 
route  to  the  British  East  Indies,  on  account  of  its  being  the  safer 
and  better  even  if  not  the  shorter  one;  but,  in  calculating  the  ainount 
of  trade  that  will  be  affected  by  the  consti'uction  of  an  Isthmian 
Canal,  it  would  be  best  to  figure  on  those  countries  only  that  will  be 
actually  brought  nearer  to  us  by  it.  The  following  table  gives  the 
total  commerce  of  the  Pacific  that  will  be  brought  nearer  to  the  ports 
of  the  Gulf  and  the  Atlantic  by  the  consti’uction  of  a canal  across  the 
Isthmus ; and  of  this  trade  we  are  likely  to  secure  a much  larger  share 
than  we  enjoy  at  present.  The  table  also  gives  the  amount  of  this 
Pacific  trade  already  handled  by  the  United  States,  the  difference 
betw’een  this  and  the  total  commerce  representing  the  business  that  we 
will  be  given  a chance  of  competing  for.  By  finding  the  character  of 
the  goods  and  products  embraced  in  this  commerce,  we  can  detei-mine 
whether  they  originate  or  are  likely  to  originate  in  the  territiory  tribu- 
tary to  New  Orleans;  and  w’e  can  then  detennine  the  chance  this 
city  enjoys  of  getting  a share  of  the  trade  that  will  be  opened  to  the 
United  States  by  the  canal. 


20 


New  Orleans  Board  of  Trade. 


Total  imports. 


Pacific  coast  of  South  America $83,977,448 

Central  America  and  Mexico  17,398,281 

Asia  on  the  Pacific 516,992,971 

Islands  of  the  Pacific 351,025,388 

Pacific  coast  of  North  America 8,414,733 


From  U.  S. 
$5,847,262 
7,978,489 
42,849,109 
26,997,875 
4,710,048 


Total 


$977,808,821  $88,382,783 


Total  Exports. 


Pacific  coast  of  South  America $101,867,266 

Central  America  and  Mexico 32,895,635 

Asia  on  the  Pacific 414,887,198 

Islands  of  the  Pacific 422,023,851 

Pacific  coast  of  North  America 14,748,075 


To  U.  S. 
$8,158,013 
11,992,110 
69,331,290 
29,875,015 
4,486,234 


Total  $986,422,025  $123,812,662 

Total  imports .$977,808,821 

Total  exports  986,422,025 


Total  trade  $1,964,230,846 

Total  imports  from  United  States 88,382,783 

Total  exports  to  United  States 123,842,662 


Total  trade  with  United  States $212,225,445 

This  does  not  include  the  trade  of  the  Pacific  coast  of  the  United 
States,  which  can  not  be  given  for  lack  of  the  official  figures.  It 
would  certainly  bring  the  total  well  over  two  billion  dollars,  about 
equally  divided  between  imports  and  exports. 

The.  figures  given  above  are  for  the  fiscal  year  ending  June  30th, 
1899.  The  commercial  returns  of  the  first  nine  months  of  the  fiscal 
year  1899-1900,  indicate  that  the  trade  of  the  Pacific,  and  the  share 
of  the  United  States  therein,  will  be  much  larger  this  year  than  ever 
before.  Our  exports  to  the  countries  of  the  Pacific,  it  now  appears, 
will  exceed  $100,000,000  for  the  first  time.  So  the  figures  to  date 
clearly  demonstrate. 

Of  the  imports,  given  above,  the  following  are  of  articles  in  which 
New  Orleans  largely  deals.  This  city,  therefore,  would  have  an  excel- 
lent chance  to  handle  a very  large  share  of  the  business  of  supplying 
them  to  the  countries  of  the  Pacific : 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal. 


21 


Cotton,  raw  $33,684,000 

Cotton  goods  and  yarns 128,515,000 

Iron,  pig,  or  partly  manufactured 41,063,000 

Breadsibufis  23,692,000 

Pork,  beef  and  other  “western  produce” 19,986,000 

Coal  22,443,000 

Lumber,  and  manufactures  of  v/ood 34,772,000 

Fertilizers  7,264,000 

Agricultural  machinery  and  implements 17,923,000 


Total $329,342,000 


It  will  be  seen  that  the  import  trade  of  the  Pacific  is  mainly  in 
those  articles  which  are  largely  handled,  or  can  be  handled,  here.  New 
Orleans  already  figures  conspicuously  in  the  export  of  breadsifcuffs, 
“western  produce”  and  fertilizers.  Its  lumber  trade  is  considerable, 
and  can  be  easily  enlarged.  It  is  now  exporting  iron  to  Europe,  and 
can  ship  it  equally  well  to  the  Pacific.  While  it  handles  a large  quan- 
tity of  coal,  it  is  not  an  exporter,  but  can  be  made  so;  indeed,  the 
chances  are  that  the  coal  trade  of  this  city  will  be  one  of  its  largest 
items  with  an  Isthmian  Canal  open.  By  the  time  that  the  canal  shall 
have  been  completed,  those  interior  waterways,  projected  or  already 
begun,  will  be  completed,  and  it  will  be  possible  to  bring  the  coal,  coke 
and  iron  of  Alabama  and  Tennessee  to  New  Orleans  by  water,  as  it 
is  now  possible  to  do  from  Pittsburg.  The  increasing  scarcity  of  coal 
in  Europe,  whence  the  Pacific  countries  obtain  most  of  their  fuel,  and 
the  consequent  advance  in  price,  render  it  certain  that  the  United 
StaJtes  will,  in  future,  furnish  a larger  share  of  the  coal  used  in  the  far 
East.  New  Orleans  ought  to  get  a big  slice  of  this  business. 

While  the  trade  that  will  be  brought  within  the  reach  of  this  city, 
by  the  consitruction  of  a canal  across  the  Isthmus,  is  immense,  tlie 
amount  of  that  business  it  now  handles  is  inconsiderable,  and  is 
almost  wholly  hidden  from  view  because  it  reaches  here  by  so  indirect 
and  circuitous  a route,  or  appears  to  be  coastwise  traffic,  of  which  the 
government  keeps  few  figures. 

During  the  fiscal  year  ending  June  30,  1899,  the  last  for  which  we 
have  any  figures.  New  Orleans  shipped  to  Japan  $444,696  worth  of  raw 
cotton.  Its  other  exports  to  Pacific  countries  bring  the  total  up  to 
$868,513.  The  imports  were  only  $368,644,  nearly  half  being  sugar 
from  Hawaii,  matting  and  other  J apanese  and  Chinese  products.  This 
Oriental  trade,  therefore,  appears  as  follows: 


Exports 

Imports 


$868,513 
. 368,644 


23  New  Orleans  Board  of  Trade. 

The  Pacific  trade  passing  througli  New  Orleans  is,  however,  much 
larger  than  it  appears  to  be,  as  the  bulk  of  it  is  received  here  by  rail 
from  San  Prancisco,  and  distributed  through  this  port,  by  rail  or 
steamer,  to  New  York  and  oither  Eastern  ports,  and  vice  versa. 

This  is  well  shown  by  a single  item — tea.  According  to  the 
Treasury  reports.  New  Orleans  imported  only  4,735  pounds  of  tea  last 
year,  valued  at  $1,063 ; whereas,  as  a matter  of  fact,  it  shipped  no  less 
than  $38,148  worth  of  tea  to  New  York  alone,  all  of  which  had  come 
here  from  China  or  Japan,  but  by  way  of  San  Francisco.  Similarly, 
New  Orleans  does  not  import  a pound  of  Lima  wool,  accordiirg  to  the 
Treasury  reports,  yet  it  was  able  to  ship  $38,820  worth  of  that  product 
of  the  Pacific  ito  New  York.  Again,  there  passes  through  New 
Orleans,  each  year,  an  average  of  $160,691  worth  of  whale-bone  and 
whale  ivory,  the  product  of  the  whale  fisheries  of  the  Northern 
Pacific,  as  well  as  many  thousands  of  dollars  worth  of  seal  skins. 
These  come  from  Alaska,  and  pass  through  New  Orleans  on  their  way 
to  London,  the  great  seal  skin  and  fur  market  of  the  world,  but 
appear  in  no  commercial  reports. 

As  for  the  produce  of  the  Pacific  coas't.  of  the  United  States,  it  does 
not  appear  at  all,  being  “coast-wise yet  the  shipments  made  to  New 
York  alone  include  almonds,  borax,  canned  goods,  Peruvian  bark, 
champagne,  ostrich  feathers,  raisins,  salmon,  wine  and  walnuts,  from 
California-  Oregon  and  Washington,  amounting  to  an  average  of 
$1,423,297  each  year.  Records  are  kept  of  these  shipments  by  the 
railroad  and  steamship  lines,  although  they  do  not  figure  in  the 
Treasury  reports. 

Of  the  receipts  at  New  Orleans  via  San  Francisco,  other  than 
American  territory,  such  as  cloves,  shellac,  tea,  whale-bone,  and  such 
articles  as  come  from  the  Pacific  and  can  come  only  from  there,  the 
average  annual  shipments  from  New  Orleans  to  New  York  (not  in- 
cluded in  the  direct  trade  given  elsewhere),  are  $678,100. 

The  known  Pacific  import  trade  of  New  Orleans,  is; 

Imported  more  or  less  direct  from  the  Pacific  (all  foreign) . $368,644 
Imported  indirectly,  through  San  Francisco,  from  the 

Pacific  coast  of  the  United  States 1,423,292 

Imported  indirectly,  through  San  Francisco,  from  Foreign 

countries  on  the  Pacific 678,100 


Total  known  imports  from  the  Pacific,  by  way  of  New 
Orleans  $2,470,036 

This  does  not  include  the  shipments  to  the  interior,  to  Chicago,  St. 
Louis  and  other  points  on  the  Mississippi,  or  the  South,  which  would 
bring  the  total  up  to  well  over  three  million  dollars. 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal. 


23 


Tlie  export  trade  passing  through  Kew  Orleans  to  the  countries  of 
the  Pacific  can  not  be  given  wiith  any  accuracy  except  the  direct 
business  already  given.  It  is  probable  that  as  much  goes  to  the  East 
as  comes  from  here  and  there.  The  freight  business  of  the  Southern 
Pacific  Eailroad  shows  this,  but  it  is  impossible  to  tell  just  how  much 
of  the  freight  carried  oujt  of  the  city  by  that  road  is  destined  for 
California,  and  how  much  for  countries  beyond. 

This  dribbling  trade  is  of  little  importance  to  Hew  Orleans,  as 
compared  with  its  present  European  business;  but  it  is  an  indication 
of  what  may  be  done  with  an  Isthmian  Canal.  All  the  trade  in  sight 
will  noit,  of  course,  be  handled  by  Hew  Orleans,  but  this  city  will,  at 
least,  be  given  a chance  of  competing  for  it,  and  with  the  proper  ener- 
getic effoids,  it  must  secure  a large  share.  The  West  is  now  shipping 
a large  part  of  its  produce  through  this  port,  as  Avell  as  its  breadstulfs ; 
and  as  the  countries  of  the  Pacific  need  Ithese  articles,  what  is  more 
natural  than  that  New  Orleans  should  do  the  exporting.  The  facili- 
ties for  handling  lumber  here  and  at  adjacent  ports  on  Mississippi 
Sound  are  well  known.  The  section  around  Hew  Orleans  supplies  the 
lumber  needs  of  Central  and  South  America,  at  least  on  the  Alilantic 
coast;  but  lumber  is  a bullcy  article,  costing  a great  deal  to  haul  a 
long  distance,  and  it  can  not  stand  the  high  rates  now  demanded  for 
its  transportaitdon  to  the  Pacific. 

We  have  already  spoken  of  the  opportunities  Hew  Orleans  offers  in 
the  exporting  of  coal  and  iron,  with  the  canal  open,  and  through 
water  transportation  direct  from  the  mines  to  the  city. 

No  idea  can  be  formed  ait  this  day  of  what  the  import  trade  from 
the  Pacific  will  amount  to.  It  will  be  seen  that  the  imports  and 
exports  of  the  Pacific  countries  about  balance  each  otlier,  and  that  the 
people  of  the  Orient  pay  for  what  they  buy  from  itihe  rest  of  the  world 
with  their  coffee,  drugs,  tea,  spices,  sugar,  hemp,  and  other  products. 
We  are  likely,  therefore,  to  increase  our  import  trade  with  any  in- 
crease of  our  export  business,  for  these  people  of  the  East  have  no 
other  way  of  paying  for  their  goods  ithan  in  kind.  If  New  Orleans 
can  then  increase  its  Pacific  trade,  it  can  be  quite  certain  that  it  will 
not  be  lopsided  like  our  European  commerce,  all  going  in  one  direc- 
tion, but  that  the  imports  will  very  nearly  equal  the  exports,  and  ithat 
New  Orleans  will  become  the  distributing  point,  not  only  for  the 
produce  of  the  great  Mississippi  Valley,  destined  for  the  countries  of 
ithe  Pacific,  but  will  distribute  the  tea,  silk,  coffee  and  other  products 
of  China,  Japan  and  all  the  East  tliroughout  the  West  and  South. 
As  these  sections  include  more  than  half  the  United  States  in  popula- 
tion and  wealth,  New  Orleans  as  their  port  will  be  the  chief  bene- 
ficiary from  the  construction  of  an  Isthmian  Canal.  This  fact  has 
long  been  recognized  here,  and,  indeed,  moi-e  than  fifty  years  ago. 


24 


Neiu  Orleans  Board  of  Trade. 


New  Orleans  was  working  earnestly  for  the  construction  of  such  a 
canal,  fully  reali2ung  the  great  impetus  it  would  give  to  the  city  and 
to  all  the  region  tributary  to  iit. 

Norman  McF.  Walker, 

Chairman  Suh-Committee. 

EEPORT  OF  THE  SUB-COMMITTEE  ON  RAILROADS  AND 
OTHER  TRANSPORTATION  LINES. 

In  mapping  out  the  work  of  the  sub-committees  the  General  com- 
mittee has  required  that  the  sub-Committee  on  Railroads  and  other 
Transportation  lines  should  prepare  statistics  showing  the  volume  of 
traffic  which  the  various  transportation  lines  would  probably  handle 
as  a result  of  the  opening  of  an  Inter-Oceanic  Canal,  and  the  probable 
influence  of  such  a Canal  on  freight  rates.  If  these  instructions  were 
followed  literally  tliis  special  committee  would  be  compelled  to  admit 
that  the  task  assigned  them  was  absolutely  impossible  of  fulfillment 
as  the  probable  influence  of  the  proposed  Canal  on  railroad  traffic  into 
and  out  of  New  Orleans  is  entirely  a matter  of  conjecture,  although 
it  is  generally  believed  that  there  will  be  a very  material  increase. 
The  probable  effect  on  freight  rates  is  even  more  problematical,  al- 
though anything  calculated  to  shorten  distances  traveled  and  reduce 
the  amount  of  labor  in  handling  must  of  necessity  favorably  affect 
transportation  charges. 

The  work  of  this  sub-committee  is  further  circumscribed  by  the  fact 
thaifc  the  task  of  noting  the  probable  effect  of  the  opening  of  inter- 
oceanic  communication  upon  general  Commerce  as  well  as  ujxm 
special  industries  all  of  which  have  an  intimate  relation  to  transporta- 
tion problems  has  been  entrusted  to  other  sub-committees.  Keeping 
in  view  these  limitations,  only  the  facts  and  figures  which  are  ad- 
mittedly associated  with  the  proper  task  of  this  committee  are  here 
considered. 

In  all  transportation  problems  the  matter  of  distance  is  necessarily 
i'lhe  most  important.  If  it  can  be  shown  that  New  Orleans  is  the 
nearest  of  the  Great  Ports  of  the  United  States  to  the  entrance  of  the 
proposed  Canal,  it  is  but  fair  to  suppose  that  other  things  being  equal, 
the  lion’s  share  of  the  trade  created  by  the  opening  of  the  Canal  will 
come  here.  A glance  at  the  map  will  show  that  New  Orleans  has 
easily  the  advantage  of  all  other  United  States  ports  except  possibly 
the  ports  of  the  Gulf  of  Mexico,  to  all  of  which  the  distance  from  tlie 
mouth  of  the  proposed  Canal  differs  immaterially.  In  the  report  of 
the  Foreign  Affairs  Committee  of  the  United  States  Senate  on  the 
Nicaragua  Canal,  submitted  in  1894,  the  following  table  appears  giv- 
ing the  distances  from  the  leading  ports  of  the  world  to  the  mouiih 
of  the  proposed  Canal; 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal. 


25 


To  East! 

From — • Entrance.'  From — 


To  West 
Entrance. 


New  York  . . 
Liverpool  . . . 
Hamburg  . . , 
Amsterdam  . 

Havre  

Cadiz 

New  Orleans 


2,021  Miles 
4,769  ” 

,5,219  ” 

4,994  ” 

4,874  ” 

4,220  ” 

1,308  ” 


San  Francisco  2,776  Miles 

Valparaiso  2,518  ” 

Callao  1,531  ” 

Portland 3,219  ” 

Victoria 3,428  ” 


These  figures  show  that  New  Orleans  is  the  nearest  of  all  the  great 
porits  not  only  of  the  United  States,  but  of  the  world  to  the  mouth  of 
the  proposed  Canal.  The  advantage  over  New  York  is  over  700  miles, 
and  although  the  advantage  over  the  Atlantic  ports  south  of  New 
York  is  naturally  less,  it  is  nevertheless  considerable. 

New  Orleans  being  by  long  odds  the  nearest  port  to  the  Canal  and 
for  that  reason  likely  ito  profit  the  most  by  its  construction,  it  is  reason- 
able to  suppose  that  the  railroads  running  into  New  Orleans  having 
an  immense  advantage  over  their  competitors  in  the  matter  of  shorter 
distance  should  experience  a material  gain  in  their  traffic.  This  gain 
is  likely  to  be  the  greater  provided  it  can  be  shown  that  in  addition  to 
being  nearest  to  the  mouth  of  the  Canal,  and  therefore  convenient  to 
ocean  tonnage.  New  Orleans  is  also  nearer  to  the  centres 
of  production  of  the  articles  and  products  which  are  most 
likely  to  seek  distribution  to  foreign  markets  through  the  pro- 
posed Canal.  It  is  generally  admitted  that  the  articles  which  would 
be  mainly  exported  from  this  country  through  an  Inter-Oceanic  Canal 
across  the  Isthmus  are  coal,  iron,  and  all  manufactures  of  iron,  ma- 
chineiy,  agricultural  implements,  flour,  grain,  raw  cottou,  manufac- 
tured cotton  goods,  lumber  and  building  materials,  and  petroleum. 
Such  of  these  products  as  are  now  exported  to  the  countries  of  the 
west  coast  of  South  America  and  the  far  East  commonly  go  through 
New  York  via  the  Suez  Canal  as  being  the  most  convenient  route, 
although  involving  a long  railroad  haul  to  tide  water  in  this  country. 
The  great  bulk  of  these  pi’oducts  which  now  go  through  the  eastern 
port  would  come  to  New  Orleans  if  the  Canal  were  open.  The  map 
shows  the  advantage  New  Orleans  has  over  New  York  in  communica- 
tion with  points  in  most  of  the  Southern  States,  and  the  following 
table  taken  from  a paper  read  by  President  Stuyvesant  Fish  of  the 
Illinois  Central  Eailroad  before  the  United  States  Industrial  Com- 
mission gives  I'the  relative  distances  between  New  Orleans  and  New 
York  from  most  of  the  interior  industrial  and  commercial  centers, 
showdng  the  advantage  in  actual  number  of  miles  New  Orleans  pos- 
sesses over  New  York: 


2G 


New  Orleans  Board  of  Trade. 


Cliicajjo,  III 

HulutTi,  Minn 

Minneapolis,  Minn 
St.  Paul,  Minn..,. 
Sioux  City,  Iowa.. 

Omaha,  Keb 

Dubuque,  Iowa. . . . 

St.  Louis,  Mo 

Peoria,  111 

Cairo,  111 

Evansville,  liul.... 

Louisville,  Xy 

Nashville,  Tenn... 

Denver,  Col 

Kansas  City,  Mo... 


To 

Xew  York 

To 

X EW 

Orleans. 

Saving  to 
Xew 
Orleans. 

Miles. 

Mile.s. 

Miles. 

912 

912 

0 

i:i90 

1337 

.53 

1332 

1297 

53 

1321 

1268 

53 

1422 

1258 

164 

1492 

1070 

332 

1079 

988 

91 

1058 

695 

363 

1006 

860 

146 

1089 

5.54 

535 

980 

708 

281 

867 

74G 

121 

939 

557 

382 

1932 

1356 

570 

1335 

878 

457 

As  far  as  the  importation  and  exportation  of  the  products  consumed 
or  raised  and  manufactured  in  the  entire  central  section  of  the  coun- 
try known  as  the  Mississippi  Valley,  New  Orleans  ought  by  virtue  of 
her  geographical  position  to  control  the  hulk  of  the  traffic  which  would 
pass  through  the  proposed  Canal.  The  Mississippi  Valley  to  every 
portion  of  which  our  New  Orleans  railroads  reach  wdthout  difficulty, 
contains  1,240,000  square  miles,  or  forty-one  per  cent,  of  the  area  of 
the  United  States.  In  that  valley  dwell  about  35,000,000  people, 
very  nearly  one-half  of  the  total  population  of  the  country.  New  Or- 
leans is  the  natural  tide  water  port  for  the  entire  Mississippi  Valley, 
and  no  other  port  in  the  United  States  has  railroads  wffiich  reach  so 
far  and  in  so  many  varied  directions  under  single  managements  into 
the  interior  of  the*Continent.  The  area  of  the  Mississippi  Valley  pro- 
duces the  great  bulk  of  the  coal,  iron,  lumber  and  other  products 
which  would  be  requii-ed  in  the  distant  markets  which  the  proposed 
Inter-Oceanic  Canal  would  open  up.  In  the  valley  also  are  manufac- 
tured the  bulk  of  the  machinery  and  agricultural  implements  which 
would  be  required.  The  railroads  of  New  Orleans.,  reach  every  part 
of  the  territory  which  would  supply  the  vast  amount  of  raw  cotton  and 
manufactured  cotton  cloth  wdiieh  the  far  East,  and  particularly  Japan 
and  China,  would  take  through  the  Canal  route. 

The  excellent  paper  of  President  Stuyvesant  Fish,  from  which  we 
have  already  quoted,  furnishes  the  following  summary  of  the  railroad 
mileage  terminating  at  New  Orleans  and  the  territory  the  roads 
traverse.  Mr.  Fish  is  an  admitted  authority  in  the  matter  and  his 
data  can  be  safely  accepted  as  the  best  available: 


27 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal. 

1.  The  Southern  Pacific,  operating 7,614  miles 

and  extending'  through  Louisiana,  Texas,  New  Mex- 
ico, Arizona  and  California  to  Portland,  Oregon, 
as  well  as  through  Nevada  and  Utah  to  Ogden, 
with  branches  reaching  into  the  Indian  Territory 
and  the  Republic  of  Mexico. 

2.  The  Queen  & Crescent  Route,  operating 1,155  miles 

in  Louisiana,  Mississippi,  Alabama,  Tennessee  and 
Kentucky,  and  reaching  Cincinnati,  Ohio. 

3.  The  Louisville  & Nashville  R.  R.,  operating,  in  its 

own  name  2,988  miles 

and  controlling,  throug'h  an  ownership 
of  stock,  the  Nashville,  Chattanooga  & 

St.  Louis  R.  R.,  which  operates 1,189  miles 


Making  together  4,177  miles 

The  lines  of  these  two  companies  lie  in  Lou- 
isiana, Mississippi,  Alabama,  Florida,  Tennessee, 

Georgia,  Kentucky,  Illinois,  and  reach  St.  Louis 
on  the  Westt,  Cincinnati  on  the  Northeast,  as  well 
as  all  the  lower  crossings  of  the  Ohio  River,  except 
Cairo. 

4.  The  Texas  & Pacific  Railway,  operating  in  Louisiana 

and  Texas  1,492  miles 

While  this  railway  is  affiliated  with  the  Gould 
System  of  Railroads  which  comprise  in  all  9,000 
miles,  reaching  through  Arkansas,  Indian  Terri- 
tory, Missouri,  Kansas,  Colorado,  and  Nebraska  to 
Denver,  Omaha,  Kansas  City  and  St.  Louis,  only 
the  mileage  actually  controlled  by  the  comoration 
operating  in  New  Orleans,  the  Texas  & Pacific  Rail- 
way Company,  is  considered  in  this  connection. 

5.  The  Yazoo  & Mississippi  Valley  R.  R.,  operating  in 

Louisiana,  Mississippi,  Arkansas  and  Tennessee . . 969  miles 

6.  The  Illinois  Central  R.  R.,  operating  in  Louisiana, 

Mississippi,  Alabama,  Tennessee,  Kentucky,  Illi- 
nois, Indiana,  Wisconsin,  Iowa,  Minnesota  and 
South  Dakota  3,679  miles 

Railroad  mileage  tributary  to  New  Orleans 19,086  miles 

Of  course  this  statement  does  not  contain  a list  of  the  many  thou- 
sand miles  of  connections  of  the  railro^ads  of  New  Orleans  which 
would  contribute  not  a little  of  the  tonnage  that  would  come  here  for 
reshipment  through  the  Inter-Oceanic  Canal. 


28 


New  Orleans  Board  of  Trade. 


Mr.  Fish’s  statement  also  omits  the  ilobile  & Oliio  li.  E.,  with  its 
882  miles  of  road,  which  also  claims  ISiew  Orleans  as  a tenninal. 

The  opening  of  the  proposed  Canal  would  without  doubt  bring 
thousands  of  vessels  annually  close  to  our  shores  in  order  to  pass 
through  the  Canal.  These  vessels  would  in  nearly  every  case  have  to 
till  their  bunlcers  preparaitory  to  the  long  voyage  in  the  Pacitic.  The 
Canal  would  therefore  create  a great  coaling  station  at  some  of  the 
many  West  India  poitis  near  its  entrance.  This  demand  for  coal  as 
well  as  the  large  demand  which  always  exists  on  the  Pacitic  coast  and 
in  the  far  East  would  open  up  a new  market  for  Alabama  coal  as  well 
as  for  Pittsburg  coal,  which  can  be  so  cheaply  floated  do\vn  the  Mis- 
sissippi river.  The  development  of  the  Alabama  coal  industry  has 
been  remarkable.  In  1889  the  production  of  coal  in  Alabama  reached 
3,572,893  short  tons,  while  in  1899  the  production  was  7,484,000  short 
tons. 

These  figures  point  to  almost  limitless  possibilities  with  respect  to 
the  production  of  Alabama  coal,  Alabama  and  Tennessee  ii'on. 

The  following  statistics  show  the  production  of  pig-iron  and  pipe  in 
Slie  Tennessee  and  Alabama  producing  districts: 

Pig  Iron.  Pipe  Iron. 


Tons.  Tons.  Total. 

1896  (from  May  1st) 592,419  67,413  659.832 

1897  1,116,129  90,373  1,206,502 

1898  1,341,181  123,519  1,464,700 

1899  1,571,370  146,266  1,717,636 


And  the  opening  of  the  Nicaragua  Canal  would  without  doubt  stim- 
ulate that  industry.  It  is  also  certain  that  vast  quantities  of  Pittsburg 
coal  would  come  down  the  river  to  this  port  for  shipment  to  the  far 
East  or  to  the  Pacific  coast  via  the  Canal. 

As  an  interesting  supplement  to  this  report  the  following  tables 
(on  tile  by  the  New  Orleans  Picayune)  showing  the  railroad  traflic 
of  New  Orleans  for  ten  years  past  are  given: 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal. 


29 


TEAFFIC  OF  TFTE  RAILROADS. 

Tables  showing  the  great  volume  and  steady  growth  of  tonnage 
handled  by  railroads  running  into  Hew  Orleans : 


Forwarded,  Received, 

Season  1889-90—  Pounds.  Pounds.  Total. 

Southern  Pacific 923,233,251  850,144,491  1,773,377,742 

Texas  & Pacific 541,775,000  4-49,560,000  991,335,000 

Louisville  & Hashville.  . . . 564,350,200  396,001,600  960,351,800 

Illinois  Central 391,521,400  732,701,200  1,124,222,600 

Mississippi  Valley  231,177,208  789,984,361  1,021,161,569 

New  Orleans  & Northea^t^n  277,175,498  756,337,000  1,033,512,498 


Total  1889-90  2,929,232,557  3,974,728,652  6,903,961,209 

F orwarded.  Received, 

Season  1890-91 — Pounds.  Pounds.  Total 

Southern  Pacific  1,002,998,491  1,022,032,190  2,025,030,681 

Texas  & Pacific 297,055,118  331,521,174  628,576,292 

Louisville  & Nashville....  611,221,300  378,007,200  989,228,500 

Illinois  Central 394,962,700  719,882,600  1,114,845,300 

Mississippi  Valley  285,053,511  745,383,869  1,030,437,380 

New  Orleans  & Northeast’n  349,148,000  897,572,000  1,246,720,000 


Total  1890-91  2,940,439,120  4,094,399,033  7,034,838,153 

Forwarded,  Received, 

Season  1891-92 — Pounds.  Pounds.  Total. 

Southern  Pacific  847,819,399  964,405,818  1,812,225,217 

Texas  & Pacific 309,389,994  455,498,152  764,888,146 

Louisville  & Nashville....  615,684,200  423,562,400  1,039,246,000 

Illinois  Central 373,690,000  982,330,000  1,356,020,000 

Mississippi  Valley  217,997,255  1,154,793,897  1,372,791,152 

New  Orleans  & Northeast’n  370,647,000  975,871,000  1,346,518,000 


Total  1891-92  2,735,227,848  4,956,461,267  7,691,689,115 

Forwarded,  Received, 

Season  1892-93 — Pounds.  Pounds.  Total. 

Soulthem  Pacific  593,739,836  824,055,882  1,417,795,718 

Texas  & Pacific 316,589,266  708,530,926  1,025,120,192 

Louisville  & Nashville....  333,315,700  386,364,800  719,680,500 

Illinois  Central 501,361,800  953,087,800  1,454,459,600 

Mississippi  Valley  200,409,118  1,043,425,024  1,243,834,142 

New  Orleans  & Northeast’n  477,126,000  1,020,550,000  1,497,676,000 


Total  1892-93  2,422,541,720  4,936,024,432  7,358,566,152 


30 


New  Orleans  Board  of  Trade. 


Forwarded,  Keceived, 

Season  1893-94—  Pounds.  Pounds.  Total. 

Southern  Pacific  647,021,594  776,786,230  1,423,807,824 

Texas  & Pacific 310,393,779  667,786,9-34  978,180,713 

Louisville  & Nashville 504,437,000  612,468,200  1,116,905,200 

Illinois  Central 466,490,000  1,215,942,000  1,682,432,000 

Mississippi  Valley  189,149,526  1,059,826,762  1,248,976,288 

New  Orleans  & Northeast’n  467,348,800  720,254,000  1,187,602,800 


TMal  1893-94  2,584,840,699  5,053,064,126  7,637,904,825 

Forwarded,  Received, 

Season  1894-95 — Pounds.  Pounds.  Total. 

Southern  Pacific  709,191,653  954,262,320  1,663,453,973 

Texas  & Pacific 310,375,020  662,106,055  972,481,075 

Louisville  & Nashville....  552,190,900  674,571,900  1,226,762,800 

Illinois  Central  470,042,000  1,486,362,000  1,956,404,000 

Mississippi  Valley  180,446,000  990,250,000  1,170,696,000 

New  Orleans  & Northeast’n  396,137,000  767,288,000  1,163,425,000 


Total  1894-95  2,618,382,573  5,534,840,275  8,153,222,848 

Forwarded,  Received, 

Season  1895-96 — Pounds.  Pounds.  Total. 

Southern  Pacific  782,853,000  947,901,000  1,730,754,000 

Texas  & Pacific 304,756,517  819,345,896  1,124,102,413 

Louisville  & Nashville....  571,838,300  679,582,800  1,251,421,100 

Illinois  Central 450,238,000  1,773,240,000  2,223,478,000 

IMississippi  Valley  189,046,000  900,266,000  1,089,312,000 

New  Orleans  & Northeast’n  434,028,000  849,684,000  1,283,712,000 


Total  1895-96  2,732,759,817  5,970,019,696  8,702,779,513 

Fonvarded,  Received, 

Season  1896-97 — Pounds.  Pormds.  Total. 

Southern  Pacific  1,011,566,000  1,074,952,000  2,086,518,000 

Texas  & Pacific 351,990,986  841,267,515  1,193,258,501 

Louisville  & Nashville....  544,555,300  669,290,900  1,213,846,200 

Illinois  Central 499,088,000  2,269,538,000  2,768,626,000 

Mississippi  Valley  198,854,000  949,686,000  1,148,540,000 

New  Orleans  & Northeast’n  396,295,346  679,500,000  1,075,795,346 


Total  1896-97  3,002,349,632  6,484,2.34,415  9,486,584,047 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal. 


31 


Forwarded,  Keceived, 

Season  1897-98 — - Pounds.  Pounds.  Total. 

Southern  Pacific  1,124,744,000  1,124,394,000  2,249,138,000 

Texas  & Pacific 341,443,896  1,410,767,009  1,752,210,905 

Louisville  & Nashville....  548,677,600  759,473,500  1,308,151,100 

Illinois  Central 526,150,000  2,158,394,000  2,684,544,000 

Mississippi  Valley  205,882,000  1,468,270,000  1,674,152,000 

New  Orleans  & Northeast’n  400,461,986  733,348,830  1,138,810,816 


Total  1897-98  3,147,359,482  7,654,647,339  10,802,006,821 

Forwarded,  Eeceived, 

Season  1898-99^ — Pounds.  Pounds.  Total. 

Southern  Pacific  1,417,458,000  1,384,654,000  2,802,112,000 

Texas  & Pacific 320,756,687  1,077,973,800  1,398,730,487 

Louisville  & Nashville....  377,817,100  844,844,600  1,222,701,700 

Illinois  Central 494,908,000  2,150,120,000  2,645,028,000 

Mississippi  Valley  179,098,000  1,356,250,000  1,535,348,000 

New  Orleans  & Northeast’n  391,414,596  938,171,451  1,329,586,047 


Total  1898-99  3,181,452,383  7,752,05-3,851  10,933,506,234 

Grouping  the  total  tonnage  handled  by  all  the  roads  each  year,  the 
following  is  the  showing  for  the  past  decade: 

Pounds  Handled. 

Season  1889-90  6,903,961,209 

Season  1890-91  7,034,838,153 

Season  1891-92  7,691,689,115 

Season  1892-93  7,358,566,152 

Season  1893-94  7,637,904,825 

Season  1894-95  8,153,222,848 

Season  1895-96  8,702,779,513 

Season  1896-97  9,486,584,047 

Season  1897-98  ‘ 10,802,006,821 

Season  1898-99  10,933,506,234 


Total  84,705,058,917 


Hunter  C.  Leake, 
Chairman  Suh-Committee. 


32 


New  Orleans  Board  of  Trade. 


REPORT  OF  THE  SUB-COMMITTEE  OH  OCEAH  TOXHAGE. 

The  sub-committee  appointed  to  ascertain  the  length  of  voy- 
ages and  possible  difference  in  cost  of  transportation  to  various 
ports  on  the  Pacific  via  the  Isthmian  Canal,  as  compared  with  present 
routes,  and  the  advantages  Hew  Orleans  will  have  gained  by  same,  as 
compared  with  other  ports,  report  as  follows ; 

It  is  impossible  to  learn  the  rates  of  freiaht  prevailing  at  all  ports 
in  the  time  given  to  make  this  report,  and  as  these  are  constantly 
changing  (the  only  ones  quoted  in  circulars  were  for  petroleum  to 
Java  and  Hong  Kong).  We  therefore  consider  it  best  to  give  the 
relative  differences  in  distance  between  the  respective  ports  as  a guide 
to  wliat  it  would  cost  to  transport  freight  by  a large  steamer  whose 
expenses  would  be  $300.00  per  day,  and  to  take  the  distance  from  port 
of  departure  to  the  Atlantic  entrance  to  the  canal,  as  from  thence  to 
any  port  on  the  Pacific,  the  distance  would  be  the  same  for  all  steam- 
ers. Our  estimate  of  time  for  voyage  is  made  for  a steamer  doing 
twelve  knots. 


IMstaiice  in  Miles  frnjn  the 


Ports  as  Tinier  to  Atlantic 
Entrance  of  Canal. 

New  Orleans.. 

New  York.... 

Liverpool 

flaniburji 

.5219  “ 

Amsterdam  . . . 

Havre 

Cadiz 

4220  “ 

Diffei'i  iioe  in  Fac  in’  of  New 
Orleans  in  Miles. 


713  miles 
3461 
3911 
3686 
3.666 
2912 


Xumber  of  Days  for  the 
V oyage. 


4 (hays 


IT  “ 

Fraction 

20  “ 

of  days  not 

17  “ 

counted. 

IT  “ 

* 

15  “ 

All  these  distances  must  be  doubled  for  voyages  out  and  home. 

The  above  saving  in  distance  and  expense  in  favor  of  Hew  Orleans 
wdll  serve  us  most  in  the  trade  with  the  west  coast  of  Soutli  America, 
as  we  will  be  brought  into  close  touch  with  ports  where  w'e  have  here- 
tofore done  no  business,  and  with  which  the  business  via  the  Suez 
Canal  or  around  the  Cape  from  Europe  can  not  be  brought  into  com- 
petition. 

In  1896,  the  vessels  of  the  Pacific  '.ilail  Steamship  Company,  alone, 
carried  to  Panama  from  the  west  coast  of  ^Mexico  and  Central 
America  no  less  than  564,049  sacks  of  coffee,  of  which  only  73,986 
sacks  went  to  Hew  A^ork,  the  rest  going  to  Europe  from  Colon.  From 
the  same  sources  of  production  upwards  of  500,000  more  sacks  were 
carried  to  Europe  direct  by  way  of  the  Straits  of  Magellan  on  tramp 
steamers. 

The  Isthmian  Canal  would  have  enabled  American  vessels  to  divert 
from  Europe  and  bring  to  our  Atlantic  and  Gulf  ports,  this  immense 
quantity  of  1,000,000  sacks  of  superior  coffee,  and  to  return  American 


Report  on  Commercial  Value  of  an  In.ler-Oceanic  Canal. 


33 


goods  in  exchange  ‘to  the  west  coast  of  Mexico  and  Central  America, 
which  are  now  drawn  from  Europe. 

This  is  but  one  item. 

The  vast  fleets  of  steamers  of  the  Pacific  Steam  Navigation  Com- 
pany, and  of  the  “Compania  Sud  Americana  de  Vapores”  monopolize 
the  coast  trade  of  western  South  America,  from  Panama  to  the 
Straits  of  Magellan,  and  they  pursue  the  very  natural  policy  of  turn- 
ing the  continually  growing  trade  of  this  superb  region  Europeward. 

The  Isthmian  Canal  would  enable  the  Americans  to  engage  in  a 
short  range  competition  for  this  trade,  directly  from  any  or  all  of  our 
Atlantic  and  Gulf  ports,  and  these  foreign  companies  would  be  forced 
out  of  their  actual  undisturbed  business  policy  or  to  change  their 
northern  terminus  from  Panama  to  New  Orleans,  New  York  or  other 
American  ports.  To  do  this  they  would  need  to  lengthen  their  voyages 
for  but  three  days  to  New  Orleans  and  six  to  New  York. 

The  American  steamers  plying  between  San  Francisco  and  Panama 
likewise  could  not  afford  to  continue  to  break  bulk  at  Panama,  and 
they  also  would  have  to  extend  their  terminus  to  the  Gulf  and 
Atlantic  ports. 

Thus  the  expensive  reshipments  across  the  Isthmus,  which  maintain 
the  direct  ocean  trade  from  the  Pacific  coast  of  North  and  South 
America  to  Europe,  and  practically  shut  out  our  own  trade  with  this 
coast,  would  be  brought  to  a summary  cessation. 

From  Panama  southward  the  coast  trade  is  practically  controlled 
by  European  interests,  and  from  Panama  northward  in  great  measure 
by  the  American  Pacific  Mail  Company. 

In  this  connection,  there  is  a current  report  and  belief  that,  by  an 
agreement,  the  foreign  lines  operating  South  of  Panama  shall  not  be 
interfered  with  by  the  American  Pacific  Mail  Line,  to  which  is  allotted 
the  west  coast  of  Central  America  and  Mexico.  Whether  this  be  true 
or  not,  the  fact  remains  that  Panama  is  the  terminus  in  both  direc- 
tions. 

The  Isthmian  Canal  would  doubtless  cause  a complete  change  in  all 
the  existing  schedules  or  combinations,  which  have  diverted  from  the 
United  States  annually  an  export  and  import  trade  of  not  less  than 
$100,000,000. 

The  stimulus  that  the  opening  of  the  Isthmian  Canal  would  give  to 
the  enterprise  in  all  countries  lying  on  the  Pacific  coast  of  North, 
Central  and  South  America,  would  prodigiously  increase  the  trade  of 
these  countries,  since  the  shortened  and  direct  water  routes  would 
induce  the  construction  of  railways  to  interior  regions  practically 
inaccessible,  abounding  in  undeveloped  agricultural  and  other  re- 
sources, and  in  hidden  and  unexploited  deposits  of  precious  and  other 
metals,  rivaling  in  riches  those  of  South  Africa  and  Alaska. 

The  voyage  from  New  Orleans  to  China  and  Japan  will  be  short- 
ened about  5,000  miles  by  the  canal. 


34 


New  Orleans  Board  of  Trade. 


Europe  will  doubtless  use  the  Suez  Canal  for  its  business  with  the 
Orient,  and  as  this  country  has  been  able  to  do  a very  good  business 
there  under  adverse  conditions,  doubtless  we  can  considerably  increase 
it  with  the  shorter  voyage  via  the  Isthmian  Canal,  and  Eew  Orleans 
be  able  to  do  a large  business  in  cotton,  machinery,  agricultural  imple- 
ments, etc. 

COMPARATIVE  OCEAN  TRAFFIC  FOR  ELEVEN  YEARS, 
PORT  OF  NEW  ORLEANS. 

Increase  in  tonnage  1899  over  1876,  2,062,959  tons. 


Vessels  entered 
and 

Cleared.  Tonnage. 

1876  1596 1,908,114 

1890  2386 2,905,758 

1891  , 2426 3,086,327 

1892  2723 3,333,968 

1893  2491 2,923,515 

1894  2301 3,077,869 

1895  2357 3,226,322 

1896  2410 3,335,786 

1897  2580 3,807,004 

1898  2696 4,250,857 

1899  2780 3,971,073 


The  tonnage  so  far  this  season  is  17  per  cent,  ahead  of  last  year, 
which  will  put  the  total  up  to  4,500,000  tons,  or  well  above  1898,  the 
maximum  year. 

The  exports  are  more  varied,  and  New  Orleans  trades  now  with  83 
different  ports  as  againsit  23  in  1880,  sending  cargoes  direct  to  Japan 
via  the  Suez  Canal,  a distance  of  12,000  miles. 

New  Orleans  has  the  largest  coastwise  business  in  the  Union. 

Including  the  coastwise  shipments  the  imports  and  exports  of  New 
Orleans  are  as  follows: 


1899.  Imports 
Exports 


$ 71,933,216 
137,883,927 


Total 


$209,817,143 


PORT  CHARGES  AT  NEW  ORLEANS. 
Bar  Pilotage. 

Vessels  drawing  10  feet  of  water  or  less,  $3.50  per  foot. 
Vessels  drawing  over  10  feet  of  water,  $4.50  per  foot. 
Fruitei's  $1.00  per  foot  less. 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal.  35 


River  Pilotage. 

Steamships,  only  (not  compulsory)  $20.00  each  way,  up  and  down. 

Wharfage. 

Twelve  cents  per  gross  register  ton,  on  steamers  and  sail  vessels 
over  1000  tons,  and  sixteen  cents  on  sail  vessels  under  1000  tons,  pay- 
able whether  vessel  lies  at  wharf  one  day  or  sixty  days;  after  sixty 
da5"s  one-third  of  above  rates  will  be  charged. 

The  above  rates  maintain  at  present  time  under  the  lease  of  the 
wharves  between  the  City  of  New  Orleans  and  the  Louisiana  Con- 
struction and  Improvement  Co.,  for  a period  of  ten  years,  commencing 
May,  1891. 

At  the  expiration  of  lease  or  earlier  in  the  event  of  purchase  or  ex- 
propriation of  lease,  the  collection  of  charges  and  maintenance  of  the 
wharves  and  landings  are  placed  in  charge  of  the  Board  of  Commis- 
sioners of  the  Port  of  New  Orleans,  created  under  the  provisions  of 
Act  No.  70  of  1896.  Under  section  two  of  said  act,  the  duties  of  said 
Board  and  the  charges  allowed  are  as  follows: 

“They  shall  be  empowered  and  it  shall  be  their  duty  to  itake  charge 
of  and  administer  the  public  wharves  of  the  Port  of  New  Orleans,  to 
construct  new  wharves  where  necessaiy;  and  to  erect  sheds  thereon  to 
protect  merchandise  in  transit;  to  place  and  keep  the  wharves,  sheds, 
levees  and  approaches  in  good  condition;  to  maintain  sufficient  depth 
of  water  and  to  provide  for  lighting  and  policing  such  wharves  and 
sheds;  to  defray  said  expenses  they  shall  charge  upon  the  shipping 
visiting  the  Port  for  the  use  of  the  wharves,  etc.,  of  the  Port  of  New 
Orleans,  not  exceeding  one  cent  per  net  register  ton  per  24  hours 
(commencing  at  midnight  just  preceding  the  arrival  of  the  vessel), 
for  the  first  six  days,  providing  the  minimum  charge  on  sea  going 
vessels  shall  not  be  less  than  $5.00.  Where  sheds  are  provided  by  said 
Boai’d  of  Commissioners,  shipping  using  same  shall  pay  an  additional 
charge  of  one-half  cenit  per  net  register  ton  for  24  hours  (time  to  be 
calculated  same  as  above)  ; said  charge,  however,  not  to  exceed  cost 
of  construction,  management  and  maintenance  of  said  improvements.” 

In  connection  with  the  charge  of  wharfage  I desire  to  state  that  this 
charge  in  the  Port  of  New  Orleans  covers  all  charges  for  these  facili- 
ties, both  on  vessel  or  cargo,  either  inivard  or  outward,  and  no  other 
charges  are  made,  as  prevails  at  almost  all  other  ports,  wffiere  wharf- 
age or  dockage  is  charged  on  all  merchandise  crossing  or  remaining 
on  wharves. 

Harbor  Fees. 

Vessels  in  ballast,  $10.00. 

Vessels  with  cargo,  $15.00. 

The  charge  of  $15.00  on  vessels  with  cargo  includes  the  Port  War- 
den’s fee.  Masters  of  vessels  to  be  furnished  copy  of  certificate,  free 
when  demanded.  One  dollar  is  charged  for  all  other  copies. 


36 


New  Orleans  Board  of  Trade. 


Quarantine  Fees. 

Steamers  $20.00,  ships  $20.00,  barks  $17.00,  three  and  four-masted 
schooners  $17,  brigs  $13.50,  small  schooners  $7.00. 

Extra  charge  when  fumigated. 

Towage  Eates  for  Steamers. 

Shifting  in  harbor,  one  tug,  $20.00;  two  tugs,  $35.00,  each  shift- 
To  Southport,  one  tug,  $35.00;  two  tugs,  $60.00,  each  way. 

Steamers  disabled  requiring  towage  from  sea,  special  rates. 

Towage  Kates  for  Sail  Vessels. 

Graduated,  running  from  60  cents  per  net  register  ton  on  vessels 
of  200  tons,  to  40  cents  per  net  register  ton,  on  vessels  of  1000  tons 
and  over. 

Compressing  Cotton. 

The  rate  is  50  cents  per  bale,  always  paid  bj'  the  shipper. 

Stevedoring  Charges. 

Cotton,  per  bale,  35  cents. 

General  cargo,  30  cents  to  40  cents  per  ton. 

Staves,  $3.50  to  $8.50  per  mille. 

IMolasses,  10  cents  to  12  cents  per  barrel. 

Sugar,  etc.,  6 cents  to  8 cents  per  barrel. 

Lumber,  $1.00  to  $1.25  per  1000  feet. 

Grain  (trimming),  $1.15  to  $1.25  per  1000  bushels. 

Grain  (sack  stowing),  3 cents  per  sack. 

Pig  iron,  35  cents  per  ton. 

Special  or  competing  arrangements  can  always  be  made. 

Watchmen  or  Special  Officers. 

Night  or  day  (if  required),  $2.00. 

Bunker  Co.\ls. 

Best  Pittsburg  steam,  about  $3.50  per  ton  of  2000  pounds. 

Ship  Chandlery  and  Provisions. 

Can  be  obtained  in  all  quantities  and  at  rates  as  cheap  as  any  other 
American  ports. 

PORT  OF  NEW  ORLEANS. 

The  report  of  the  United  States  Commission  of  the  Navy  Depart- 
ment, darted  Nov.  19,  1889,  is  elaborate  and  exhaustive,  as  to  the  ad- 
vantages of  New  Orleans  as  a naval  base:  “New  Orleans  is  the  term- 
inus of  six  trunk  lines  of  railroads.  The  communication  by  water 
with  the  vast  extent  of  territory  embraced  in  the  valley  of  the  Missis- 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal. 


37 


sippi  is  unsurpassed.  It  is  the  principal  commercial  port  of  the  Gulf 
States,  and  possesses  great  facilities  for  obtaining  every  class  of  build- 
ing material,  skilled  and  unskilled  labor,  and  supplies ; coal  is  abund- 
ant and  cheap.  The  amount  of  commerce  that  passes  in  and  out  of 
the  Gulf  of  Mexico  is  a very  large  portion  of  the  total  commerce  of  the 
United  States.  The  amount  of  export  from  New  Orleans  coming 
from  the  Avhole  Mississippi  basin  and  much  of  the  great  Wesit  will  de- 
mand protection  at  any  cost,  and  consequently,  whether  the  navy-yard 
be  located  at  New  Orleans  or  elsewhere,  the  Passes  and  all  the  ap- 
proaches to  the  city  will  have  to  be  defended  as  thoroughly  as  military 
and  naval  skill  can  effect  it.  Such  being  the  case,  and  since  there  is 
no  other  point  in  the  Gulf  of  equal  importance,  or  the  closing  of  which 
would  do  as  much  injury  to  so  large  a district  or  to  so  many  people, 
no  other  place  will  have  or  begin  to  have  the  same  protection  and  care, 
unless  the  Government  establishes  elsewhere  a navy-yard,  and  it  is 
absolutely  necessary  to  proitect  it  in  order  to  retain  the  command  of 
the  Gulf.” 

As  a result  of  this  report,  the  second  largest  dry  dock  in  this  coun- 
try is  under  construction  on  the  west  bank  of  the  river  opposite  New 
Orleans. 

Railroad  freights  from  the  Northwestern  cities  are  cheaper  to  New 
Orleans  than  to  New  York  by  reason  of  the  shorter  distance,  for  in- 
stance ; 

Denver  is  1358  miles  from  New  Orleans  and  1932  miles  from  New 
York. 

Kansas  City  is  878  miles  from  New  Orleans  and  1335  miles  from 
New  York. 

St.  Louis  is  700  miles  from  New  Orleans  and  1058  miles  from  New 
York. 

But  taking  Chicago  as  on  the  dividing  line,  being  equal  distance 
from  each,  we  can  consider  all  points  West  of  that  as  (tributary  to  the 
Gulf,  and  rates  of  railroad  freight  from  such  important  cities  as 
Omaha,  Kansas  City,  Denver,  St.  Louis,  etc.,  are  appreciably  lower  to 
New  Orleans  than  to  New  York.  Under  the  conditions  it  would  be  un- 
reasonable to  expect  freight  destined  for  the  Pacific  to  pay  higher 
railroad  rates  to  New  York,  and  then  find  it  700  miles  further  from 
the  canal  than  if  shipped  from  New  Orleans. 

The  port  of  New  Orleans  has  for  some  years  past  been  favored  with 
the  most  modern  of  ocean  freight  carriers,  and  until  recently  its 
enormous  exports  of  cotton,  grain,  lumber,  cotton  seed  products,  etc., 
have  obtained  the  full  benefit  of  economical  ocean  transportation. 

The  past  three  or  four  years  have,  however,  served  to  manifest  in  a 
very  marked  manner  the  fact  that  the  Eads  channel  of  20  years  ago 
had  become  entirely  insufficient  and  very  dangerous  to  modern  vessels. 
Shipowners  built  vessels  for  the  trade  and  sent  to  the  port  of  New 
Orleans  the  latest  additions  to  their  fleets,  knowing  the  limited  depth 


38 


New  Orleans  Board  of  Trade. 


of  water  in  the  channel  through  the  South  Pass,  but  relying  upon  the 
volume  of  cotton,  which  is  a bulky  and  light  freight,  to  so  load  their 
vessels,  that  their  draft  of  water  would  not  be  beyond  the  capacity  of 
the  Pass.  It  required  but  a brief  period,  however,  to  demonstrate  that 
not  only  was  the  depth  of  water  a factor,  but  the  narrow  channel  and 
strong  current  frequently  experienced,  made  its  navigation  hazardous 
in  the  extreme  to  the  large  carriers.  Not  only  were  these  vessels  un- 
able to  load  in  heavy  freight  above  some  three-fourths  of  their  ca- 
pacity, thereby  seriously  reducing  their  economical  value,  but  their 
greater  length  and  breadth  caused  an  immediate  increase  in  the  num- 
ber of  vessels  grounding  in  the  Pass.  These  occurrences  have  assumed 
the  most  alarming  aspect,  and  more  than  once  in  the  past  two  years 
the  grounding  of  these  large  vessels  has  sei’iously  threatened  Ithe  entire 
destruction  of  the  only  navigable  channel  from  the  river  to  the  gulf. 

For  over  three  years  past  a committee  appointed  by  the  exchanges 
and  important  business  interests  of  New  Orleans,  has  been  urging 
upon  Congress  ithrough  its  committees  this  danger  which  threatens 
the  South  Pass  and  the  necessity  of  opening  up  the  Southwest  Pass 
with  a wider  and  deeper  channel  from  the  river  to  the  sea.  Two 
years  ago  Congress  in  response  to  the  representations  of  this  commit- 
tee, appointed  a special  Board  of  Engineers  with  instructions  to  sur- 
vey the  Southwest  Pass  and  report  upon  the  practicability  of  opening 
up  the  Pass  and  estimate  of  the  cost  thereof.  The  report  was  placed 
before  the  River  and  Harbors  Committee  of  Congress  in  January, 
1899,  but  was  not  considered  by  it  sufficiently  explicit  and  satisfactorj* 
to  justify  favorable  action,  and,  therefore,  another  special  Board  of 
Engineers  was  appointed  to  estimate  the  cost  and  prepare  a plan  for 
opening  up  a channel  luith  a depth  of  35  feet  through  the  Southwest 
Pass. 

The  report  of  this  Board  was  completed  and  laid  before  Congress  in 
January  last,  and  states  that  the  pass  can  be  opened  and  a channel  of 
35  feet  in  depth  by  some  1000  feet  width  can  be  made  at  estimated 
cost  of  not  over  six  million  dollars.  This  report  will,  it  is  hoped,  be 
received  by  Congress  as  satisfacitory  and  sufficient  justification  for  the 
immediate  appropriation  of  the  funds  necessary  to  carry  out  the  re- 
port of  the  Board  of  Engineers  and  thereby  provide  an  outlet  from 
the  great  river  to  the  ocean  more  suitable  for  the  requirements  of 
commerce  and  more  in  keeping  with  ithe  majesty  and  importance  of 
the  great  highway. 

Senator  Morgan  of  Alabama,  in  an  address  on  the  Isthmian  Canal, 
says:  “If  you  really  knew  what  this  country  was  and  could  feel  the 
relation  it  bears  to  the  whole  world,  I cannot  see  how  you  could  hesi- 
tate for  one  moment  to  furnish  another  mouth  to  the  Mississippi  into 
the  Pacific  Ocean.” 

We  have  shown  the  relation  the  mouth  of  the  Mississippi  bears  to 
the  Canal,  and  these  facts  must  impress  upon  the  Government  that  to 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal. 


39 


get  the  full  benefit  of  the  enormous  commerce  affected  by  the  Ameri- 
can Canal,  Southwest  Pass,  the  most  important  mouJth  of  the  Missis- 
sippi, must  be  promptly  opened  to  commerce. 

The  participation  in  the  greater  prosperity  which  is  to  come  to  this 
country,  hinges  largely  upon  deep  water  being  provided  at  ithe  mouth 
of  the  Mississippi,  so  that  the  products  of  35,000,000  of  people  can 
have  the  full  benefit  of  cheaper  ocean  rates,  which  must  follow  ade- 
quate facilities  for  modern  steamships  for  the  Mississippi  Valley. 
Mew  Orleans  must  occupy  the  same  relative  position  ito  the  Pacific 
trade  through  the  Canal,  that  Mew  York  occupies  to  our  European 
trade. 

M.  J.  Sanders, 
Chairman  Suh-Committee. 

ADDEESS  OF  EX-SEMATOK  SAMUEL  PASCO,  OF  FLORIDA. 

Senator  Pasco,  of  the  Commission,  said  it  was  most  gratifying  to 
s^e  the  interest  and  enthusiasm  displayed  by  the  committee  and  the 
'■borough  and  excellent  manner  in  which  they  had  handled  the  subject 
submitted  to  them.  There  was  very  little  left  for  the  Committee  to  do 
here,  as  the  reports  of  the  committees  were  so  full  and  exhaustive,  and 
covered  every  point  so  well,  that  he  could  see  nothing  left  for  him  to 
say  and  he  would,  therefore,  leave  any  additional  suggestions  to  be  made 
'to  Prof.  Johnson.  It  was,  indeed,  a pleasure  to  him  to  be  in  Mew  Or- 
leans, which  city,  it  had  been  long  known,  had  displayed  deep  interest  in 
the  matter  which  was  nearest  the  hearts  of  all  present.  He  then 
related  the  history  of  the  measure  before  the  Senate  and  House. 
Senator  Morgan,  who  had  been  indefatigable  in  his  efforts  to  secure 
the  co-operation  of  the  House  of  Representatives,  but  who  had  failed 
in  every  effort,  finally  found  an  opportunity  to  tack  an  amendment 
upon  the  Rivers  and  Harbors  Bill  to  appropriate  $125,000,000  for  an 
Inter-Oceanic  Canal.  The  Plouse  failed  to  pass  the  bill  as  amended, 
but  a compromise  was  effected  authorizing  the  president  to  appoint  a 
Commission  to  investigate  every  feasible  route,  the  cost,  the  rights, 
franchises,  privileges,  governmental  interests,  etc.  The  result  was 
the  appointment  of  the  present  Commission  of  nine  members,  with 
Admiral  Walker  as  president.  They  were  authorized  to  investigate 
the  Micaraguan,  Panama,  or  any  other  route,  from  the  Atlantic  to 
the  Pacific,  for  a canal,  as  well  as  the  rights,  privileges  and  franchises 
of  any  company.  A committee  to  investigate  the  commercial  advan- 
tages of  an  Inter-Oceanic  Canal  was  then  appointed,  and  Professor 
Johnson,  of  Philadelphia,  was  made  chairman  of  that  committee. 
Working  parties  were  then  sent  to  Micaragua,  Costa  Rica  and 
Panama  to  investigate  the  various  proposed  routes.  These  working 
parties  were  composed  of  expert  and  capable  engineers,  and  they  had 
been  working  for  months. 


40 


New  Orleans  Board  of  Trade. 


Later  the  Commission  determined  to  go  in  person  to  ascertain  what 
was  necessary  and  at  the  same  time  to  thoroughly  understand  all  the 
projected  routes.  On  January  6th  the  Commission  left  New  York 
and  proceeded  to  Greytown  and  examined  the  San  Juan  river  and 
harbor.  They  ascended  the  San  J uan  river  to  Lake  Nicaragua,  some- 
times on  foot,  sometimes  in  boats.  They  crossed  the  lake  in  a steam- 
boat, and  then  examined  the  country  from  the  lake  to  the  Pacific 
ocean,  camping  out  with  the  working  parties  sent  out  in  advance  by 
the  Commission.  Then  they  returned  to  the  lake  and  visited  the 
president  of  Nicaragua  and  returned  to  the  Pacific  ocean.  They  took 
a steamer  down  to  Panama  and  crossed  over  to  Colon  and  went  up 
and  down  the  Panama  coast,  examining  the  railro'ads,  canals,  etc. 
They  then  proceeded  to  Costa  Rica  and  had  a i:)leasant  interview  with 
the  president  of  that  Republic,  and  then  returned  to  this  counti’j-. 

Early  in  December  coming  all  the  information  would  be  ready  and 
would  be  laid  before  Congress.  Comparisons  would  be  then  made 
and  the  route  of  the  canal  would  be  finallj'  located. 

He  closed  his  address  by  making  the  most  cheerful  prediction  that 
in  twelve  months  from  the  present  time  work  on  the  canal  would  he 
co7nmenced. 

He  said  that  it  would  be  superfluous  to  speak  of  the  advantages  of 
an  Inter-Oceanic  Canal,  after  hearing  the  able  papei-s  and  reports 
read.  He  spoke  of  the  advantageous  situation  of  New  Orleans,  and 
the  immense  advantages  and  value  which  the  proposed  canal  would 
be  to  New  Orleans,  the  Gulf  Coast  and  the  entire  South.  The  revival 
of  business  since  the  late  war  with  Spain  was  apparent.  They  had 
visited  Tampa,  Pensacola  and  Mobile,  and  at  all  those  points  the 
march  of  improvement  was  conspicuous.  Commerce  was  expanding 
and  when  the  canal  would  be  completed  no  one  could  estimate  or  fore- 
tell the  great  results  which  would  follow,  greater  in  the  South  than 
probably  anywhere  else. 

Senator  Pasco’s  address  was  received  with  great  applause. 

ADDRESS  OE  PROFESSOR  EMORY  R.  JOHNSON,  PROFES- 
SOR OF  COMMERCE  AND  INDUSTRY,  UNIVERSITY  OF 
PENNSYLVANIA. 

Professor  Johnson  said  that  the  business  men  of  New  Orleans  had 
presented  matters  more  thoroughly  and  fully  than  any  other  city. 
He  desired  to  express  his  appreciation  of  the  work  done  by  the  commit- 
tee appointed  by  the  Board  of  Trade.  He  congratulated  them  upon 
their  high  appreciation  of  the  work  set  before  them,  and 
thanked  them  heartily,  as  it  had  greatly  simplified,  aided  and  facili- 
tated the  work  of  the  committee  of  which  he  was  chairman. 


Report  on  Commercial  Value  of  an  Inter-Oceanic  Canal. 


41 


The  committee  had  been  appointed  to  examine  more  particularly 
into  the  commercial  and  industrial  advantages  which  would  accrue  to 
this  country  by  the  construction  of  an  Inter-Oceanic  Canal,  the 
committee  concluded  that  none  were  better  able  to  answer  this  ques- 
tion more  fully,  satisfactorily  and  comprehensively  than  tlje  active 
business  men. 

Pie  spoke  of  the  growing-  commerce  between  this  nation  and  the 
Pacific,  and  of  the  bright  prospects  when  the  canal  should  be  com- 
pleted. ITe  reviewed  the  work  which  the  Commission  bad  already 
accomplished,  and  closed,  thanking  them  for  the  thorough  reports  and 
the  excellent  and  genuine  spirit  exhibited  by  the  merchants  of  New 
Orleans. 


ADDRESS  OF  HON.  PAUL  CAPDEVIELLE,  MAYOR  OF  NEW 

ORLEANS. 


Mayor  Capdevielle,  of  New  Orleans,  was  then  called  upon  for  a few 
remarks.  He  said  that  he  had  come  to  the  meeting  as  a member  of  the 
committee,  and  was  delighted  to  meet  the  distinguished  gentlemen. 
He  was  glad  to  know  Senator  Pasco  and  Professor  Johnson,  and  sin- 
cerely hoped  that  the  work  would  commence  next  December.  What 
was  to  be  good  for  New  Orleans  was  nearest  his  heart,  and  he  joined 
the  Board  of  Trade  in  bidding  their  guests  a cordial  welcome. 


ADDRESS  OF  GENERAL  JASTREMSKI,  COMMISSIONER  OF 
AGRICULTURE  FOR  THE  STATE  AND  MINISTER  TO 
PERU  UNDER  CLEVELAND, 


Cotnmenced  by  assuring  the  guests  and  members  of  the  Board  of 
Trade  and  committee  that  the  State  government  was  in  hearty  accord 
with  the  Inter-Oceanic  Canal  project  and  considered  it  of  the  first 
importance.  He  went  into  a long  and  full  description  of  the  Sout^i 
American  countries  in  the  Pacific,  their  trade,  industries,  where  they 
drew  their  supplies,  railroads,  products  of  the  country,  climate,  in 
fact,  gave  a most  complete  and  edifying. description.  IP®  was  listened 
to  with  great  attention  by  the  two  guests,  who  interrupted  him  once 
or  twice  to  ask  questions  upon  subjects  upon  which  they  desired  more 
minute  information  than  the  General  had  time  to  give. 

When  he  concluded,  Mr.  Plunter  C.  Leake,  chainnan  Reception 
Committee  of  the  Board  of  Trade,  extended  an  invitation  to  Senator 
Pasco,  Professor  Johnson  and  the  gentlemen  present  to  pai-ticipate  in 
a ride  on  the  river  at  2 o’clock  to-morrow  (Friday)  evening'.  He 
stated  that  Commander  Bostick,  of  the  Naval  Reserve,  had  placed  the 
United  States  gunboat  “Stranger”  at  the  service  of  the  Board  of 
Trade,  and  that  the  boat  would  be  moored  at  the  head  of  Jackson 
avenue  to  receive  the  guests. 


4-2 


New  Orleans  Board  of  Trade. 


Chainnan  Trufant,  in  an  enthusiastic  and  impressive  manner,  sec- 
onded Mr.  Leake’s  invitation,  assuring  the  two  gentlemen  that  they 
would  see  the  finest  harbor  in  the  world.  With  thirty-five  feet  of 
water  over  Southwest  Pass  bar,  ships  of  that  draft  could  come  up  the 
river,  and  moor  right  up  to  the  wharves  anywhere  within  the  fifteen 
miles  of  river  front  of  the  city,  “^o  laying  off  to  anchor,”  he  said, 
“but  they  come  right  up  to  the  wharf.” 

Senator  Pasco  and  Professor  Johnson  expressed  their  acceptance 
of  the  invitation  and  the  suitability  of  the  hour  fixed,  and  the  meeting 
adjourned. 

All  of  which  is  respectfully  submitted  as  a report  of  the  proceedings. 

S.^m’l.  a.  Truf.vxt, 
Chairman  General  Committee. 

Ap]>roved : 

Udolpho  Wolfe, 

Hy.  H.  Smith,  President. 

Secretary. 


New  Orleans,  l\ray  2.5th.  1900. 


FEED  H.  MOAKE,  PEIjSTTEE. 
New  Orleans,  La. 

1900 


Date  Due 


Library  Bureau  Cat.  no.  1137 

976.3  Z995  no.l  P33550 


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